Did RM20 million in charges reflect the RM6 billion scandal?

Question

Accepted Answer

The RM20 million charges against Tan Sri Ahmad Ramli Mohd Nor do not fully reflect the broader RM6 billion Littoral Combat Ship (LCS) scandal, according to the Malaysian United Democratic Alliance (Muda). Muda contends that the charges, which involve channelling payments exceeding RM20 million without company approval, represent only a fraction of the financial discrepancies highlighted in the Public Accounts Committee (PAC) report.
Limited Scope of Charges
The charges brought against former Boustead Heavy Industries Corp Bhd managing director Tan Sri Ahmad Ramli Mohd Nor relate to the alleged approval of payments totaling RM20,824,051 to three distinct companies: Setaria Holding Limited, JSD Corporation Pte Ltd, and Sousmarin Armada Ltd. These approvals were reportedly made without the necessary authorisation from the Boustead Naval Shipyard (BNS) board of directors. Muda has pointed out that the specific companies involved in these transactions were not explicitly identified in the PAC's findings concerning the LCS project.
Broader Financial Discrepancies in the LCS Project
The PAC report detailed a significantly larger financial scale for the LCS project, with BNS awarded a RM9.128 billion contract for six vessels. By the time of the report, the Malaysian government had already disbursed RM6.083 billion, yet none of the LCS vessels were completed. This represents a substantial deviation from the original schedule, which anticipated the handover of five vessels by August 2022. The PAC also identified cost overruns amounting to RM1.4005 billion, a sum that included RM400 million used to settle an outstanding debt from a previous project, the New Generation Patrol Vehicle.
Unaddressed PAC Concerns
Muda argues that the charges against Ahmad Ramli do not encompass several critical issues raised by the PAC. These include the sudden change in ship design from the Sigma type, initially chosen by the Royal Malaysian Navy, to the Gowind type in July 2011, a decision that prompted concern from the then Navy Commander, Tan Sri Abdul Aziz Jaafar. Furthermore, questions remain regarding BNS's appointment of CAD and CED companies for equipment procurement, which allegedly led to a multiplication of costs. The party also seeks clarity on why contracts were awarded to BNS companies through continuous negotiation despite BNS facing severe financial difficulties and unfavourable contract terms for the government. The PAC report also highlighted that equipment stored for the LCS project, valued at an estimated RM1.7 billion, had approximately 15% already rendered obsolete.

Reading history

Hide →

This history is cleared when the page is closed.

Did RM20 million in charges reflect the RM6 billion scandal?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends