KUALA LUMPUR: Datuk Seri Dr Ahmad Zahid Hamidi explained that the failure to supply six second generation Patrol Vessels Littoral Combat Ship (LCS) arose last year when he no longer held the post of Minister of Defence.
He said he held the post from April 2009 to May 2013.
“I would like to stress that I resigned as Minister of Defence in 2013 and did not serve (in the post) in 2019 – surely this issue is beyond my knowledge,” he said in a statement yesterday. According to him, LCS were built by Boustead Naval Shipyard Sdn Bhd, owned by Boustead Holdings Bhd.
He said the largest shareholder in Boustead Holdings is Armed Forces Fund Board (LTAT), while the second largest shareholder is the Retirement Fund Incorporated (KWAP) – both owned by the government. Referring to the audit report raised by Public Accounts Committee chairman Wong Kah Woh, Ahmad Zahid said the awarding of the contract to Boustead was in accordance with the Guidelines for the Application of Direct Negotiation Procurement dated April 17, 2002. He said it clearly mentioned that direct negotiations could only be made after obtaining the approval of the Ministry of Finance, and not the Minister of Defence.
According to Ahmad Zahid, he respected the role and jurisdiction of PAC in ensuring the continuity of government structure and management. However, he believed the PAC should be more sensitive in handling the entire investigation process, especially national security issues, as it is still at the investigation stage.
“I would like to emphasise that this explanation does not change my intention to continue to co-operate and assist PAC in completing its investigation,” he said.
On Thursday, the media reported that PAC would call Ahmad Zahid early next month to complete the proceedings regarding the failure to supply the six LCS. — Bernama
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