LCS subcontractors overcharged govt by three times, claims Rafizi

By admin-s On Aug 10, 2022

Putrajaya billed with RM1.185 billion, but works only cost RM397 million, says PKR deputy chief

(The Vibes) – Two packages worth RM1.185 billion was awarded to subcontractor Contraves Advanced Devices Sdn Bhd (CAD) by littoral combat ship (LCS) provider Boustead Naval Shipyard Sdn Bhd (BNS), alleged PKR deputy president Rafizi Ramli.

In a statement today, he claimed that on the same day BNS appointed CAD as a subcontractor for the LCS project (April 9, 2012), BNS also allowed CAD to appoint its associate company Contraves Electrodynamics Sdn Bhd (CED) as its subcontractor.

He said CED then issued a Letter of Award to French naval vessel maker Naval Group (formerly DCNS) to “provide work” under the two packages valued at RM1.185 billion, which would be paid by the Malaysian government.

“Unfortunately, investigations showed that these two packages, which were finalised at RM1.185 billion with the Malaysian government, awarded to DCNS were only valued at RM397 million.

“This means that the works invoiced by DCNS to CED amounts to RM397 million while the claims from subcontractors CED and CAD to the government through BNS are three times more expensive.”

He alleged that “even children could conclude” that there are “invisible hands” behind companies BNS, CAD and CED which had arranged supply contracts to take a 200% commission from the cost charged by Naval Group.