KUALA LUMPUR (Oct 12): The first of the littoral combat ships (LCS) vessels is expected to be completed by August next year, before undergoing two tests, namely the Harbor Acceptance Test and the Sea Acceptance Trial, according to Deputy Defence Minister Adly Zahari.
Adly stated that the construction of the LCS had resumed last month, following the signing of the sixth supplementary agreement (SA6) on May 26 this year, after the Cabinet approved the continuation of the troubled project.
"Therefore, the first vessel is expected to be completed by August next year, before undergoing the Harbor Acceptance Test and Sea Acceptance Trial conducted by the Royal Malaysian Navy (TLDM) over the course of two years. A total of five vessels will be handed over to TLDM in phases, starting from 2026 and concluding in 2029," he said during the oral question and answer session in Dewan Rakyat on Thursday.
Adly was responding to a question from Jamaludin Yahya (PN-Pasir Salak), who inquired about the recent status of the LCS construction work.
The LCS project, considered Malaysia's largest defence procurement in history, faced intense scrutiny after the Public Accounts Committee (PAC) revealed last year that none of the six ships had been completed, despite the government having paid RM6.08 billion.
In May this year, Defence Minister Datuk Seri Mohamad Hasan announced the establishment of a special-purpose vehicle (SPV) by the Finance Ministry to acquire Boustead Naval Shipyard Sdn Bhd (BNSSB), to complete the delayed LCS project.
Subsequently, BNSSB signed the SA6 with the government. As a result, the number of LCS vessels was reduced from six to five; however, the construction cost had ballooned from RM9.128 billion to RM11.22 billion, representing a rise of RM2.098 billion.
On Monday (Oct 9), the PAC published a report on the LCS, revealing that the fifth and final LCS vessel would not be ready until 2029, as the LCS construction period has been extended to 83 months.
It is now expected that TLDM will only be able to obtain all five LCS vessels in 2029, compared to the original contract, which had anticipated the delivery of LCS 5 (the fifth and final LCS vessel) by 2022.
The PAC also revealed that the SA6 agreement signed on May 26 did not receive approval from the Attorney General's Chamber (AGC).
However, the Ministry of Defence (Mindef) stressed on Tuesday (Oct 10) that the AGC was actively involved and had given its full cooperation in finalising SA6 for the construction of the LCS.
Answering a supplementary question from Siti Zailah (PN-Rantau Panjang), Adly reiterated that claims of Mindef allegedly signing the LCS deal without the AGC's approval were inaccurate.
"Mindef included TLDM and BNSSB in a series of discussions regarding drafting the SA6. As a result, Mindef received comments from the AGC through a letter dated May 24, 2023, where four main issues were raised, namely the progress payment plan, integrated logistic support, detailed design, and liquidated ascertained damages. Mindef has taken all these matters into account and relevant amendments have been made accordingly," Adly added.
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