LCS project continues to be plagued by delays, says PAC chairman

According to Datuk Mas Ermieyati Samsudin, the littoral combat ship (LCS) project is facing ongoing delays.

She expressed the Public Accounts Committee (PAC)’s concern over the continued delay in the construction of LCS.

Ermieyati revealed that the Defence Ministry reported an 86-day delay in the project, reaching only 67.28% progress compared to the 68.77% target on the new timetable.

The detailed design for the LCS is still pending finalization between the ministry and the Naval Group in France.

She also mentioned that the contractors for the LCS, previously known as Boustead Naval Shipyard (BNS), have now been renamed Lumut Naval Shipyard or Lunas.

This name change occurred after the Minister of Finance (Incorporated) acquired BNS through its subsidiary Ocean Sunshine Bhd in August 2023.

The PAC presented its report on the ministry’s follow-up actions to the PAC’s recommendations between October 2023 and May 2023, as well as from June to September the same year.

In a previous statement, Ermieyati mentioned that the LSC 1 (KD Maharajalela) is expected to be handed over to the Royal Malaysian Navy (TLDM) by October 2026.

The LCS project first drew attention in the Auditor-General’s Report 2019, leading to the PAC’s investigation in 2022 and subsequent recommendations.

Originally, six LCS ships were set to be delivered in stages starting in 2019 under the multi-billion project signed in 2014, but none have been completed as planned.

It was revealed that the government had already paid RM6.08 billion for the project, with some RM1.4 billion of allocated funds redirected for other purposes.

The PAC stated that the Navy was slated to receive five ships by August 2022, but delays have pushed the delivery timeline to 2029 for the last ship.

Former Navy chief Tan Sri Ahmad Ramli Mohd Nor faced charges of criminal breach of trust involving RM21.08 million at the Sessions Court.

In January last year, the government revised the number of LCS ships from six to five due to the delays.

The construction cost for LCS escalated from RM9.128 billion to RM11.22 billion, reflecting an increase of RM2.098 billion.

Ermieyati also mentioned that the PAC will investigate the proposed Multi-Lane Free Flow (MLFF) project, even though it was not highlighted in the Auditor-General’s Report.

The PAC has the authority to probe matters involving public funds, she added, as officials such as Datuk Zahrul Hakim Abdullah, Datuk Sazali Harun, and Khairulanuar Muhari were summoned to appear before the committee on February 26 regarding the MLFF project.