IT DOESN’T really matter if he’s the fall guy so long as he has a part in the outrageous act of corruption that has been equated as “another 1MDB” by the New Straits Times or otherwise likened to be a mother of all scandals by virtue of the sum involved.
Obviously, graft haters in the audience would also love to see a big fish or two (or even three) to make their way to the frying pan or barbeque pit so to speak.
In what is seen as the first definite legal action by the Malaysian authorities in the RM9 bil littoral combat ship (LCS) fiasco, Bernama confirmed that a former high-ranking Boustead Naval Shipyard Sdn Bhd (BNS) official will be charged in the Kuala Lumpur Sessions Court today with three counts of criminal breach of trust under Section 409 of the Penal Code.
Based on a check of the court system, the case will be heard before Judge Suzana Hussin at 9 am.
On Aug 4, the Public Accounts Committee (PAC) disclosed that not a single one of the six ships meant for the Royal Malaysian Navy had been completed even though the Government had paid RM6.08 bil or 66.64% of the RM9.13 bil price tag.
Done through direct negotiations with BNS and inked in 2014, the project contract has stipulated that the first vessel was to have been delivered in 2019 while the rest were to be completed and delivered by August 2022.
From the PAC report, it is learnt that BNS had made additional claims which would have driven up the price of the six vessels to an astronomical RM11.14 bil or RM1.86 bil per vessel.
At the current juncture, work on five LCS which was at various stages has come to a halt with 164 original equipment manufacturers, vendors and suppliers being owed RM800 mil and banks an additional RM700 mil, according to theedgemarkets.com.
In a related development, the business news portal also highlighted how the recent PAC report had questioned the actions of former Boustead Heavy Industries Corp Bhd (BHIC) managing director Tan Sri Ahmad Ramli Mohd Nor and LCS project director Anuar Murad.
“Ahmad Ramli, who was also chairman of the LCS Steering Committee, appointed committee members without the approval of, or discussion with, BHIC’s board members,” theedgemarkets.com pointed out.
“The PAC report adds that Anuar who was also BHIC defence and safety director, issued various letters of award (LOA) and variation orders (VO) with the support of Ahmad Ramli, allowing lax management to prevail.”
BNS is 20.77% controlled by BHIC and 68.85% by Boustead Holdings Bhd with armed forces fund Lembaga Tabung Angkatan Tentera (LTAT) holding a 10.38% stake and the Minister of Finance Inc having a single golden share. In turn, Boustead Holdings controls 65% of BHIC.
PAC chairman Wong Kah Woh who is the Ipoh Timur MP summed up the prevailing sentiment on the ground to theedgemarkets.com:
“It is very sad. The project value is (circa) RM9 bil for six ships (LCS), so the cost for one ship is about RM1.5 bil, so with RM6 bil being spent, you would expect at least four to be built … but no, not even one. This time, the money involved is big, the biggest PAC has encountered. It’s just crazy.” – Aug 16, 2022
Pic credit: Malaysian Defence portal / Royal Malaysian Navy’s graphic
