Mohd Rafizi: RM192m diverted to fake companies under LCS project

by FAYYADH JAAFAR / pic BERNAMA

PKR deputy president Mohd Rafizi Ramli (picture) alleges that RM192 million was syphoned off from the construction of the six littoral combat ships (LCS) through a complex scheme involving offshore companies.

In his blog post today, Mohd Rafizi claimed that an internal investigation conducted by the LCS project found that Alizes Marine Ltd, a company incorporated in Malta, was one of the offshore companies that received payments for non-existent supply services.

He said the investigation revealed that DCNS, the French company contracted to provide the design and technical specifications of the ships, used Alizes Marine Ltd as a front to benefit from the supply of spare parts on the arrangement made and carved in Malaysia.

He described the scheme as similar to that of the 1Malaysia Development Bhd (1MDB) case.

“The investigation also revealed that DCNS and another French company were part of a scheme that transferred money from this project, in violation of the Anti-Money Laundering Act. 

“This modus operandi is similar to the method used to steal money from 1MDB. Fake companies are set up all over the world whose names resemble real companies,” he said.

Mohd Rafizi further said the LCS project subcontractor paid €43.69 million (RM210 million) to Alizes Marine France based on invoices sent but paid to other accounts under Alizes Marine Ltd for the purchase of spare parts. The name is similar to Alizes Marine France but these are not the same entities.

He also claimed that the total turnover in Alizes Marine France’s financial statements reported to the French authorities was only €3.53 million.

“This meant that a total of RM192 million was transferred to offshore companies that could not be traced. 

“That is why I insist that such an elaborate scheme to steal people’s funds cannot happen without the protection of superiors more powerful than a recently indicted retired Navy commander,” he added.

Mohd Rafizi also called for the then Prime Minister Datuk Seri Mohd Najib Razak, together with Defence Minister Datuk Seri Hishammuddin Hussein and Umno president Datuk Seri Dr Zahid Hamidi to be investigated for their roles in the alleged theft of public money.

“If the schemes involving offshore companies are accused of complicity with DCNS, and DCNS has a record of paying bribes to companies linked to Najib during the previous Scorpene scandal, then it is right that the people continue to demand an investigation to find out who is the mastermind — the real one that has the power to protect DCNS,” he said.

Previously, former Commander of the Royal Malaysian Navy Tan Sri Ahmad Ramli Mohd Nor was charged in the Kuala Lumpur Sessions Court with three charges of breach of trust involving company funds of more than RM21 million related to the LCS project in 2010 and 2011.

However, Ahmad Ramli, 78, who is also the former Boustead Naval Shipyard Sdn Bhd MD, pleaded not guilty to all three charges.