KUALA LUMPUR: The Public Account Committee (PAC) has urged the Defence Ministry and the navy to use funds prudently in completing the littoral combat ship (LCS) project.
It also called on the Finance Ministry to play a more proactive role in ensuring no misappropriation of public funds in LCS construction projects.
The recommendation was one of the five recommendations presented by the committee in its report published today on the progress of the LCS between June and September this year.
PAC chairman Datuk Mas Ermieyati Samsudin said the committee also agreed that the Defence Minister should continue presenting progress reports on the LCS project every three months until the completion of the LCS project.
"However, PAC will continue to present progress reports on the LCS project periodically," she told a press conference held at the parliament building today.
Mas Ermieyati said the Defence Ministry also needs to present progress reports to the committee, by following international project management standards, encompassing both physical and financial aspects.
"The ministry must ensure that the construction contractor completes the detailed design, including obtaining approval from Naval Group, before August 2024 as outlined in the Sixth Supplementary Contract (SA6).
"Payments to the original equipment manufacturer (OEM) and relevant parties should align with the guidelines in SA6 to avoid construction delays."
The report also highlighted the six SA6; the details on the additional cost of RM2.098 billion; the timeline of LCS; the takeover of Boustead Naval Shipyard Sdn Bhd (BNS) to Finance Ministry-owned Ocean Sunshine Bhd (OSB) and varieties of LCS development projects up to Sept 25.