By Debra Chong
The Malaysian Insider
Dec 18, 2011
KUALA LUMPUR, Dec 18 – Datuk Seri Najib Razak must justify his government’s purchase of six patrol ships for a whopping RM9 billion, an increase of RM3 billion from the original RM6 billion approved earlier this year, DAP’s Lim Kit Siang demanded.
The opposition politician rang the alarm after a local shipbuilder said it won a RM9 billion “letter of award” from the Defence Ministry late last Friday.
Lim said the PM had promised full transparency in government procurement projects and must now take responsibility and explain the price hike. — file pic“Boustead Naval Shipyard Sdn Bhd had received the Letter of Award dated 16 December 2011 from the Ministry of Defence Malaysia for the Contract to design, construct, equip, install, commission, integrate, test and trials, and deliver six units of ‘Second Generation Patrol Vessels Littoral Combat Ships (Frigate Class)’.
“The Contract carries a ceiling of RM9.0 billion, to be implemented over three Malaysia Plans, 10, 11 and 12. The delivery of the First of Class ship is estimated in 2017 with follow on ships every six months thereafter,” Boustead Heavy Industries Corporation Bhd (BHIC) said in a filing to Bursa Malaysia.
Lim said the prime minister had promised full transparency in government procurement projects and must now take responsibility and explain the price hike.
“Justify the increase. Was the contract open to tender? The basic rules of integrity and accountability should be followed,” the Ipoh Timur MP told The Malaysian Insider when contacted. Continue reading “Politicians demand Putrajaya explain RM9b nod for six patrol ships”