How to curb graft in Malaysia’s notorious defence procurement

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From A Hashim

Last week, the Malaysian Anti-Corruption Commission (MACC) found fresh leads in its investigation of the littoral combat ships (LCS) project, leading to the arrest of three individuals. While it is too soon to determine what went wrong, there is little doubt about what needs to be done in the future.

To recap, the procurement contract for LCS was awarded to Boustead Naval Shipyard Sdn Bhd (BNS) in 2011. Despite a whopping payment of RM6 billion since then, none of the ships have been delivered on schedule. KD Maharaja Lela, the first of six ships ordered by the government, was scheduled for delivery in 2019, and yet, all there is to show now is an empty husk languishing in Lumut.

These developments are not surprising given that Malaysia’s defence procurements have consistently been plagued by controversies, delayed deliveries, and ballooning costs. In the maritime sphere, a perfect example would be the procurement of Kedah-class offshore patrol vessels (OPV), a project which was ironically rescued by BNS’ parent company, Boustead Heavy Industries Corporation (BHIC).

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