PETALING JAYA: Mismanagement and irregularities in the littoral combat deliver (LCS) project might lead to potential losses associated with RM890mil, the declassified forensic audit review indicates.
These losses were sustained by overlapping letters of award (LOAs), double claims, currency conversion, undelivered items, and alleged trick payments to businesses.
The review by Boustead Large Industries Corporation Berhad (BHIC) was declassified on Monday (Aug 22) night.
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Of the losses, RM537mil was due to dual claims for the same program with different names or descriptions used related to service costs plus combat system integration.
The survey said this was verified by Boustead Naval Shipyard Sdn Bhd (BNS) chief executive officer Captain Azhar Jumaat however it noted that an specialist opinion was needed on the matter.
It also found that an overlapping LOA issued to subcontractor Contraves Electrodynamics Sdn Bhd (CED) CED in 2012 for the built-in test (BIT) centre experienced cost RM305mil.
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The report again observed that an expert opinion was also needed with this.
It remarked that there were losses due to alleged dummy payments for technical providers to three companies related to the Second Era Patrol Vessel (SGPV) project during last year and 2012 towards the tune of RM23. 36mil.
The particular report also said that the currency in two LOAs had been changed from ringgit to euros and resulted in a net loss of RM13. 4mil to BNS.
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RM6. 78mil was also marked as being a potential loss in order to Boustead Penang Shipyard Sdn Bhd (BPS) due to a reorder pertaining to 23 undelivered products by Alizes Sea.
There was the potential loss of RM4. 58mil due to additional variation orders issued in favour of IHC Metalix BV for work certification in 2017, despite its cost being part of the original request for quotation.