Why has no LCS ship been delivered despite RM6 billion paid?

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No Littoral Combat Ship Delivered Despite RM6 Billion Payment Due to Project Mismanagement

Despite substantial payments totalling RM6.083 billion towards a RM9 billion contract for five Littoral Combat Ships (LCS) for the Malaysian Navy, not a single vessel has been completed or delivered. The project, which commenced in 2013 with an expected ten-year completion timeframe, has encountered significant issues, leading to cost overruns and a lack of tangible output.
Substantial Funds Disbursed Without Delivery

A significant sum of RM6.083 billion has been paid for a contract valued at RM9 billion, intended for the acquisition of five LCS. This expenditure, initiated since 2011, has not resulted in the delivery of any operational ships to the Malaysian Navy. The contract's original scope envisioned the construction and delivery of six LCS vessels by the end of 2023.
Project Delayed and Over Budget

The contract for the LCS project began in 2013, with an initial expectation of completion within a decade. However, the project has faced considerable delays. Furthermore, cost overruns for the LCS project have reportedly reached RM1.4 billion. A portion of these overruns, specifically RM400 million, was allocated to settle outstanding debts from a previous patrol vessel project.
Direct Negotiation and Lack of Oversight Allegations

The procurement of the LCS was conducted through direct negotiations. Concerns have been raised regarding the alleged mismanagement of public funds within this project, with accusations pointing towards key leaders within Umno and the Barisan Nasional (BN) coalition. The Public Accounts Committee (PAC) has been scrutinising the project's financial dealings.

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Why has no LCS ship been delivered despite RM6 billion paid?

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