2 CEOs held in probe over troubled combat ship-building projects
Published on: Tuesday, January 25, 2022
By: FMT
.jpg "2 CEOs held in probe over troubled combat ship-building projects")
A third person is suspected of receiving bribes from a sub-contractor appointed to oversee the project to build littoral combat ships. (Bernama pic)
PETALING JAYA: The Malaysian Anti-Corruption Commission (MACC) arrested two individuals yesterday in its investigation into procurement contracts for six littoral combat ships (LCS) to be built by Boustead Naval Shipyard.
According to a source, MACC arrested two CEOs involved in the project while they were at the MACC headquarters to provide statements.
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“The two are suspected of receiving bribes through payments made to a third company overseas.
“Another person is also suspected of receiving bribes from a sub-contractor appointed to oversee the project,” the source said.
The investigation is being conducted under Section 16 of the MACC Act and Section 409 of the Penal Code.
Worth more than RM9 billion, the project was awarded in 2014 with an order for six LCS to be built. The first vessel was to have been delivered in April 2019.
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In October last year, the Public Accounts Committee (PAC) said RM6.083 billion had been paid but not a single LCS had been completed.
In the same month, the government agreed to resume the project that had been suspended since 2019 because of delays and rising costs.
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