Some items purchased for the LCS are not for ship replacement equipment


PKR VP Rafizi Ramli revealed that some items purchased by the government for the littoral combat ships (LCS) are not even for ship replacement equipment, but ordinary items that can be bought at a normal supermarket.

In his blog post today, Rafizi said that a large number of contracts with Alizes Marine Ltd (a fake company established to embezzle funds) with the LCS contract are to supply the ship’s spare parts.

“This company was appointed by giving the impression that it is related to a French company (Alizes Marine France), which has a licence to export defence spare parts from the French government. After obtaining the contract to supply spare parts from the LCS project, invoices with false addresses were sent and payment instructions diverted funds to different companies registered in Malta and Labuan. The bank account used is also from Singapore, not France,” he wrote.

Rafizi added that the LCS Project Forensic Report has revealed that this fake company does not even have a licence to export defence replacement equipment as claimed.

“Even worse, these bogus companies send invoices for items that do not meet the requirements of defence spare parts. Some of the items supplied are common items that can be purchased at Mydin supermarkets or 7-Eleven convenience stores.

He based his conclusion on the LCS Project Forensic Report that stated global purchase orders (POs) issued to Alizes Marine contained certain items which did not belong to depot level spare parts (repairs and maintenance), such as mineral water, cotton bud packs, cleaning cloths, fans, etc.

“This signified the level of discrepancy and deception in the process of procurement.

“The POs issued to Alizes Marine (to order ship replacement equipment) contain some items that do not meet the depot’s replacement equipment requirements (for ship maintenance and repair work), such as mineral water, ear cotton buds, cloth (small cloth for washing), fan, and so on.

“This shows the level of malpractice and fraud that occurred in the procurement process,” the report stated.

Rafizi said the contract to supposedly supply ship replacement equipment given to Alizes Marine involved payment of around RM210 million from 2011 to 2015 alone.

“That is why there are some important questions that need to be answered regarding the stock of spare parts, because the Public Accounts Committee Report reveals that the project has purchased up to RM1.7 billion of spare parts while the ship is not yet ready,” he wrote.

He questions how much of that spare parts stock is actually for everyday items that can be bought at a normal supermarket. Additionally, Rafizi asked if Umno/Barisan Nasional claims that the project has reached 50% progress until 2018 (since construction started) and how much of that percentage of progress is attributed to the purchase of items that have nothing to do with ship replacements.

He calls for political action to be taken against the Minister in the Prime Minister’s Department Datuk Dr Abdul Latiff Ahmad, whom he previously accused of being involved in the scandal.

“Prime Minister (PM) Datuk Seri Ismail Sabri Yaakob, needs to fire Abdul Latiff from the Cabinet. Tan Sri Muhyiddin Yassin needs to officially inform the PM that Parti Pribumi Bersatu Malaysia has made a decision so that Abdul Latiff be replaced by another candidate from Bersatu in the Cabinet.

“This is an important test to assess whether Muhyiddin and Bersatu are really sincere against corruption, like his writings that took credit for the conviction in the recent SRC International Sdn Bhd case,” he wrote.