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22 December 2020

Defence Ministry Issues Boustead A Notice Of Claim for RM180 Million for delays in LCS procurement



LAD claim for RM180 million issued for delay in LCS' procurement - Ismail Sabri

BERNAMA
22/12/2020 

KUALA LUMPUR, Dec 22 -- The Defence Ministry has issued a notice of claim for Liquidated and Ascertained Damages (LAD)  amounting to RM180 million over the delay in the procurement of the Littoral Combat Ship (LCS).

Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob said the notice was issued after the ministry conducted an investigation into Boustead Naval Shipyard (BNS) following a report on the delay.

 “From the total amount of RM180 million,  RM80.6 million was collected through set-off in October 2020," he said when winding up the debate on the Supply Bill 2021 in the Dewan Negara today.

The RM9.128 billion LCS construction project, worth RM9.128 billion, was awarded to BNS by the government through the Ministry of Defence and a total of RM6 billion has been paid for the purpose of building the six ships simultaneously.

However, to date, not a single LCS is handed over to the Royal Malaysian Navy (RMN), although the contract agreement, signed in January 2014, stipulates that LCS 1 should be handed over to the government in April 2019.

Meanwhile, on housing for  veterans of the Malaysian Armed Forces (ATM), Ismail Sabri said the ministry would build 3,500 units of houses under the “Satu Anggota Satu Rumah” (SASaR) programme.

He said said the housing project would will be built in Sungai Besi here, with 900 units to be allocated for ATM veterans.

"This programme, to be implemented with the cooperation of the federal and state government, as  well as the private sector, is  also to encourage ATM members and veterans to have their own houses,” he added.

He said the price of the houses would be lower that the current market price.

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