KL (Nov 27): Boustead Heavy Industries (BHIC) lodged report with MACC
possible irregularities in RM9b littoral combat ship (LCS) project
project awarded by Ministry of Defence in 2011
for six LCSs for Royal Malaysian Navy
- 1st ship should have been delivered in April 2019
- not one ship completed although govt paid company RM6b
- 1st delivery scheduled for 2017
BOD undergone major revamp in 2019 and 2020
BHIC will extend fullest cooperation to MACC in any investigation on LCS project
had several discussions with MACC
Former deputy defence minister Liew Chin Tong told Dewan Negara in Sept
RM1b of RM5.94b paid could not be traced
Boustead completed none of the orders
sources say delays stem from BNS’ inability to show schematic design
- Boustead Holdings 68.84% stake
- BHIC 20.8% stake
- remainder owned by LTAT
My comments :This was under the watch of the Kleptocracy. Under PM12 (PM12 = 12 years jail).
RM6 billion has already been spent of which RM1 billion cannot be accounted. No ships have been delivered. If the ships could not be completed because there were no proper design drawings then how was that remaining RM5.0 Billion authorised to be spent?
Going by the report in The Edge which quotes ‘industry sources’ RM5 billion was already spent to begin construction on SIX ships for which there were no proper schematic designs (to enable the completion of the construction.) Hence ALL the six ships are incomplete until today.
This is another example of a “monopoly” created with taxpayers funds. Boustead Heavy Industries Corporation – a shipbuilder – basically had a monopoly over navy ship contracts in Malaysia.
This is another example of monopolies going bad.
Wherever there are monopolies the end results are always not good. The people (taxpayers in this case) end up paying more, we do not get the promised product and it breeds complacency and laziness. All three were present in this situation.
We hope that after revamping the BOD, that BHIC will be able to put those bad days in the past and sail on to the seven seas and beyond. BHIC cannot change the past. But the future is in your own hands.
But if their monopolistic situation persists then I see less future for BHIC. Get rid of the monopoly. Learn to compete. -http://syedsoutsidethebox.blogspot.com/