RM6b for bulk purchases of LCS, LTAT CEO says

by FAYYADH JAAFAR / Pic by TMR FILE

THE RM6 billion spent on a bulk purchase of equipment to build six Littoral Combat Ships (LCS) was less expensive than buying them individually, says Armed Forces Pension Fund (LTAT) CEO Ahmad Nazim Abdul Rahman (picture).

He also confirmed that the vessels were being built at the Lumut shipyard.

Ahmad Nazim stated that he was personally involved in the LCS project recovery plan, together with the Defence Ministry and Navy.

“These ships are being constructed simultaneously.”

In a Facebook post yesterday, Ahmad Nazim said that purchasing equipment in bulk from suppliers such as the Naval Group, a key participant in the French naval sector, was less expensive than purchasing individual pieces.

“RM9 billion for six ships under the initial deal equates to around RM1.5 billion for one ship.

“Egypt and the United Arab Emirates paid around RM1.9 billion on an LCS ship built in France.

“Because they are more complex, the US constructs their LCS at a cost of RM2.4 billion each,” he said.

The Parliamentary Public Accounts Committee (PAC) revealed last week that Putrajaya had spent RM6 billion on the project, yet not a single ship had been completed. Through the direct tender, this money was granted to Boustead Naval Shipyard Sdn Bhd (BNS).

According to the PAC, BNS ignored the Navy’s concerns on the LCS project.

Ahmad Nazim further stated that the LCS project, with a project value of more than RM4 billion, had offered job possibilities for about 3,000 engineers and over 400 local vendors in various industries.

However, he claims that the failure of the Navy Shipbuilding Privatisation Project was to blame for the LCS project failure.

As a result, Ahmad Nazim said that BNS is paying the price with massive debt.