Report: BNS officials destroyed paper trail on LCS project

KEY figures had deliberately destroyed critical evidence in the ongoing littoral combat ship (LCS) controversy in a blatant attempt to cover up numerous misconducts that plague the project. 

The forensic audit report by Boustead Heavy Industries Corporation Bhd (BHIC) on the LCS project highlighted findings that included how persons with vested interest in the project had intentionally disposed of possibly incriminating paper trails. 

According to a segment of the report that is dedicated to detailing crucial elements indicating purposeful mismanagement within the project, former Boustead Naval Shipyard Sdn Bhd (BNS) leaders had acted suspiciously by eliminating materials that are pertinent to the project. 

“Destruction of numerous electronic devices, documents by the ex-directors including the ex-head of the supply chain who were managing the LCS programme…on behalf of the PMO (program management organisation) was an indication of a cover-up,” said the report.  

BNS is the main contractor for the LCS project and shares the same parent company as BHIC, Boustead Holdings Bhd.   

The report which was completed in July 2020 further revealed that then LCS programme director Anuar Murad had refused to leave behind his company-provided laptop when he moved on from the post.  

“Taking away the official laptop provided to the ex-PD (programme director) along with him while leaving the office was most suspicious,” the report noted.  

According to news reports, it is believed that Anuar had vacated the LCS programme director position in 2017.  

Defence Minister Datuk Seri Hishammuddin Hussein announced the declassification of the report on Monday night (Aug 22). 

This is the third report revealed to the public in the LCS saga following the Public Accounts Committee’s (PAC) report on hearings it conducted into the matter, and the report by the Special Investigation Committee on Public Governance, Procurement and Finance (JKSTUPKK). 

Despite numerous redacted sections, the report undressed how evidence of irregularities and lack of proper governance in the LCS project had been gathered from as early as 2010.  

The report also reiterated that despite various red flags being raised by multiple concerned parties who pointed out irregularities and wrongdoing, no corrective measures were taken either by the company chairman or management.  

“Such failure to stop the abuse of power was a clear act of cover-up by the then managing director and his immediate subordinates,” it said.  

The managing director in question was Tan Sri Ahmad Ramli Mohd Nor, who has since been charged with three counts of criminal breach of trust.  

The former navy chief has been accused of fraudulently approving three payments amounting to RM21.08 mil to three different firms without the approval of the BNS board. 

Ramli, 78, was charged under Section 409 of the Penal Code, which provides for a jail term of up to 20 years, whipping and a fine if found guilty. 

He pleaded not guilty when the charges were read to him before Sessions Court judge Suzana Hussain last Tuesday (Aug 16). – Aug 23, 2022 

 

Main photo credit: The Vibes

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