Update on LCS project next week, says Hishammuddin

KUALA LUMPUR: The Defence Ministry will provide updates on the delayed Littoral Combat Ships (LCS) construction project next week.

Senior Defence Minister Datuk Seri Hishammuddin Hussein said the mobilisation efforts had taken place in the past few months and progress had been achieved.

"We have revitalised relationships with the original equipment manufacturer in Europe and also the vendors.

"We have also spoken to the banks on the cabinet's decision to continue with the project.

"By year-end, if we have fulfilled all the necessary requirements, then we can move on to the construction of our first ship.

"Much progress has been made during the mobilisation period. In a few days, we will issue statements on it," he said at a press conference at the Tuanku Mizan Army Hospital in Wangsa Maju here.

The Public Accounts Committee's findings revealed there were discrepancies and delays in the RM9 billion LCS construction project since 2017.

The contract was awarded to Boustead Naval Shipyard Sdn Bhd via direct negotiation, with the government paying RM6.083 billion, but not one LCS has been delivered, thus far.

According to the declassified report by the governance, procurement, and finance investigation committee, the cost of completing the six LCS may balloon to RM11.145bil.

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