Related News: https://www.freemalaysiatoday.com/category/nation/2023/06/01/govt-failing-to-address-key-lcs-issues-says-watchdog/
Coverage by: Free Malaysia Today (FMT)
PETALING JAYA: The Center to Combat Corruption and Cronyism (C4) has criticised the government’s handling of the littoral combat ship (LCS) project, deeming it a failure.
The group said investigations into the people responsible for the scandal have not been made public, despite previous statements suggesting otherwise.
It pointed out the inconsistencies revealed by Boustead Holdings Bhd’s internal audit and the key figures in the defence ministry making questionable decisions.
“C4’s research uncovered connections between this scandal and the Scorpene submarine controversy, possibly involving the same people.
“Why has the government been slow to act on this?” it said in a statement.
C4 expressed apprehension over Prime Minister Anwar Ibrahim’s comment that the government had “no choice” but to continue with the project, emphasising the lack of accountability.
“Allowing mismanaged mega projects to continue despite the possibility of corruption, based on the logic of ‘sunk cost’, sets a dangerous precedent, disregarding past mismanagement in favour of project completion,” it said.
It emphasised the importance of increased oversight to ensure the timely completion and delivery of the ships.
“Reports to the Cabinet and the Public Accounts Committee (PAC) should be made publicly available, given the significant investment and the need for transparency.
“Rebuilding trust and addressing the impact on national defence capabilities are vital after the mismanagement of funds and delays,” it said.
Boustead Naval Shipyard (BNS) amended the contract on May 26, reducing the number of ships it will deliver, but at an increase in overall cost.
The finance ministry has established a special purpose vehicle supposedly to enhance oversight.
While C4 welcomed the oversight, it expressed concerns about previous accountability failures and the potential implications for future anti-corruption efforts.
It called for the project monitoring committee and PAC reports to be made public, along with Malaysian Anti-Corruption Commission’s investigation into the scandal.
The watchdog also demanded the prosecution of people involved in corruption and mismanagement, and institutional reforms to tackle corruption.
