Why were two subcontractors engaged for the LCS project?

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Allegations of Subcontractor Engagement to Conceal LCS Project Irregularities

Allegations have been raised that the engagement of two subcontractors, Contraves Advanced Devices Sdn Bhd (CAD) and Contraves Electrodynamics Sdn Bhd (CED), for the littoral combat ship (LCS) project was part of a plan to conceal irregularities through complex financial transactions. This occurred despite Boustead Naval Shipyard Sdn Bhd (BNS) possessing the capacity to manage the project independently.
Subcontractors Engaged Amidst Project Irregularity Claims

The involvement of CAD and CED as subcontractors in the LCS project has been specifically cited as a mechanism intended to obscure potential issues within the project's financial dealings. This strategic engagement was reportedly planned from the project's inception to facilitate complicated transactions.
Concerns Raised by Former Navy Commander

Former commander of the Royal Malaysian Navy, Admiral Tan Sri Datuk Sri Abdul Aziz Jaafar, had previously voiced concerns regarding the LCS project's reliance on these two subcontractors. His reservations highlight a broader unease about the structure and dependencies established within the project's execution framework.
Defence of Subcontractor Involvement by BHIC

Boustead Heavy Industries Corporation (BHIC) has offered a rationale for the involvement of RAD, a partner in CAD, citing the need for their specific expertise and technology transfer to ensure the success of the LCS project. This explanation suggests a strategic imperative for bringing in external capabilities.

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Why were two subcontractors engaged for the LCS project?

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