What recourse does Mindef have against the NSM supplier for non-performance?

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Ministry of Defence Can Pursue Claims Against NSM Supplier for Non-Performance

The Ministry of Defence (Mindef) possesses contractual recourse against the Norwegian supplier of the Naval Strike Missile (NSM) anti-ship missile system. These provisions allow the government to take action in instances of non-performance or breach of contractual obligations, enabling Mindef to pursue claims for the recovery of payments and related damages.
Contractual Provisions for Government Protection

The contract for the NSM systems includes specific clauses designed to protect the Malaysian government's interests. These provisions empower Mindef to act if the supplier fails to meet its contractual obligations or commits a breach. This framework is being invoked by the ministry to safeguard government interests in the current situation.
Pursuit of Claims for Payment Recovery and Damages

Mindef is actively utilising the available contractual mechanisms to safeguard the government's financial interests. This includes initiating claims with the objective of recovering the RM571.9 million payment made for the NSM systems. Furthermore, the ministry intends to pursue claims for any related damages incurred as a result of the non-performance.
Circumstances of Payment and Supplier's Obligations

The payment of RM571.9 million was made in accordance with the contract's progress, not as an advance payment. At the time of payment, all NSM systems had been fully manufactured, successfully passed tests conducted by the Royal Malaysian Navy (RMN), and were prepared for delivery to Malaysia. This indicates that the payment was made against tangible progress and completed manufacturing stages.

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What recourse does Mindef have against the NSM supplier for non-performance?

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