Zahid Hamidi should step down as UMNO President as he is unable for a month to clear himself of major responsibility for the RM9 billion littoral combatant ships (LCS) scandal and, even worse, clear Najib Razak as the biggest “shark’ in the scandal
Ahmad Zahid Hamidi should step down as UMNO President as he is unable for a month to clear himself of major responsibility for the RM9 billion littoral combatant ships (LCS) scandal, and even worse, clear Najib Razak as the biggest “shark” in the scandal.
A month ago, Zahid was foolish to deny that he was responsible for the RM9 billion LCS scandal.
He said it was unreasonable to pin the failure of the littoral combat ships (LCS) procurement on him as he claimed he was not the defence minister when the project was awarded.
As such, he said those who were involved in the failure of the LCS procurement should explain to the Public Accounts Committee (PAC).
Although Zahid held the defence minister position from April 2009 to May 2013 and the contract was signed on 17th July 2014, the two declassified reports on the LCS scandal despite the heavily redacted sections have shown that it was Zahid who must bear greater responsibility than his successor as Defence Minister, Hishamuddin Hussein, for the LCS scandal for the following reasons:
(i) The Letter of Intent (LOI) for the supply of six LCS at the total value of RM9 billion was issued on 15th October 2010 and the Letter of Award (LOA) on 16th December 2011 but the contract was held back by some two and a half years and was only signed on 17th July 2014. However, between the issue of LOA and the signing of the contract, there were 21 LOAs worth some RM5 billion for equipments and systems, most of which were made when Zahid was the Defence Minister. As the LOAs made during the time Hishamuddin Hashim became Defence Minister after the 13th General Election did not reach RM700 million, Zahid must bear greater responsibility than Hishammuddin for the LCS scandal.
(ii) The LCS procurement obviously preceded Zahid’s time as Defence Minister, as there were discussions for the LCS procurement earlier when Najib Razak was the Defence Minister.
(iii) It is clear that apart from Najib, who became Prime Minister in April 2009 and appointed Zahid as Defence Minister, nobody else could get Zahid as Defence Minister to overturn his own decision as recommended by the Royal Malaysian Navy (RMN) to contract six Dutch-made Sigma LCS and chose the Scorpene manufacturer’s six French-made Gowind LCS without consulting the Navy, the end-user.
Zahid’s refusal to deny that it was Najib who directed him to overturn his decision on the LCS in 2011 speaks volumes.
He can still clarify if the facts were otherwise and prove firstly, he was not responsible for the RM9 billion LCS scandal and secondly, it was not Najib who instructed him to overturn his decision to procure the Sigma LCS and instead to choose the Gowind LCS.
Hishammuddin, as the current Defence Minister should prove to the Cabinet tomorrow that the RM9 billion LCS scandal will not be a new 1MDB scandal, as there seems to be disturbing similarities in the two scandals.
I am still waiting for Hishamuddin’s answer as why the Defence Ministry has reduced from two LCS to one LCS which must be completed and delivered by the contractor with no additional government funds.
When Hishammuddin appeared before the Public Accounts Committee (PAC) on 25th January 2022, he spoke about “corporate restructuring” of the RM9 billion LCS contract and that the contractor, Boustead Naval Shipyards (BNS), will have to deliver two LCS without any new cost to the government.
This is what Hishammuddin said in January 2022 at the PAC hearing: “They (BNS) will not get any more money from the government until these two ships have been delivered.” (page 4 of Hansard).
Hishammuddin also said: “…if we want to proceed, we cannot put all the money upfront if Boustead doesn’t commit to being able to deliver at least two ships” and “This is the only option I have. If I am wrong or is not enough, then I don’t have any other ideas to propose. You got to find a new Defence Minister lah” in his appearance before the PAC meeting on 25th January 2022.
Cabinet Ministers must learn to be responsible for their statements and to account for any deviation from their commitments.