How much of the overrun was used for old debts?

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RM400 Million of the Littoral Combat Ship Project Overrun Was Used for Old Debts

A total of RM1.4 billion in cost overruns for the Littoral Combat Ship (LCS) project has been reported. Of this amount, RM400 million was allocated to settle outstanding debts from a previous patrol vessel project. This significant financial burden adds to the complexities of the RM9 billion LCS project, which is the largest procurement undertaken by the Ministry of Defence (Mindef).
Breakdown of Project Overrun

The Public Accounts Committee (PAC) revealed the extent of the cost overruns, identifying RM1.4 billion as the total excess expenditure. This figure highlights substantial financial challenges encountered during the project's execution. The LCS project, initiated in 2013 with a ten-year timeline, aimed to deliver six ships by the end of 2023.
Allocation for Previous Debts

A specific component of the cost overrun, amounting to RM400 million, was directed towards clearing debts accrued from an earlier patrol vessel initiative. This indicates that financial obligations from past projects directly impacted the budget of the current LCS procurement.
Ministry of Defence's Scrutiny

The Ministry of Defence (Mindef) has stated that it will thoroughly examine the PAC's report and its subsequent recommendations concerning the LCS scandal. This review will encompass the identified cost overruns and any related irregularities.
Ongoing Investigations and Oversight

The government has established a special administrative committee, co-chaired by the secretaries-general of the Treasury and Mindef, to closely monitor the LCS project's mobilisation process over the next six months. Concurrently, investigations by the Malaysian Anti-Corruption Commission (MACC) are ongoing, with assurances that parties involved in any wrongdoing will be held accountable.

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How much of the overrun was used for old debts?

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