KUALA LUMPUR: The Defence Ministry (Mindef) emphasised today that the Attorney-General's Chambers (A-GC) were actively involved in the progress of the Littoral Combat Ship (LCS) project.
Addressing concerns raised in report published on an online portal, the ministry stressed it did not disregard the A-GC in the signing of the Sixth Additional Contract (SA6).
"Mindef would like to accentuate that the A-GC has always been involved in the process of finalising the draft of SA6.
"Mindef, including the Royal Malaysian Navy, Boustead Naval Shipyard Sdn Bhd (BNSSB), and A-GC, have conducted a series of discussions and meetings related to the draft of SA6 since April this year, following the approval of the project's direction by the Cabinet on April 19 this year," said the ministry in a statement today.
Mindef revealed that the ministry has received feedback from the A-GC through a letter dated May 24, this year.
"Four main issues were raised: first, the Progress Payment Plan; second, Integrated Logistic Support (ILS); third, Detailed Design; and lastly, Liquidated Ascertained Damages (LAD), along with other proposed amendments.
"We have taken into account all these matters, and relevant amendments have been made accordingly.
"SA6 was signed after considering the A-GC's feedback as well as the previous PAC reports and recommendations from the Committee on Public Governance, Procurement, and Finance (JKSTUPKK)," its said.
Referring to the report which claimed there was no progress in LCS construction from the 14th PAC visit in December 2021 until the 15th PAC visit in June this year, Mindef clarified that the government's approved project continuation plan in April stipulated that construction should commence in September instead.
"This was due to the approved project continuation plan by the government on April 19, with construction commencing in September after a three-month mobilisation period by BNSSB," said Mindef.
Yesterday, the PAC in a declassified report slammed the ministry for excluding the A-GC from the signing of th SA6, saying that it was an action that is not justifiable, as it can have legal implications for the government and should not be repeated.
The SA6 was signed between Defence Ministry secretary-general Datuk Seri Muez Abd Aziz and Boustead Holding Bhd (BHB) chairman Datuk Nazim Rahman on May 26 this year.
The agreement among others details project deliverables and governance of reviving the LCS project.
In a press conference at Parliament yesterday, Defence Minister Datuk Seri Mohamad Hasan said the news reports were 'totally wrong' as representatives from the A-GC were present throughout the process of getting the approval.