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A-G Report: Defence Ministry did not impose claims or late charges of RM116.54mil to company supposed to deliver its ship

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PETALING JAYA: The Defence Ministry failed to impose liquidated damages or late charges of RM116.54mil on the company that was supposed to deliver the littoral combat ship (LCS) 1, said the 2019 Auditor-General’s report.

At the same time, the report found that the advanced payment made for the ship exceeded the actual work progress by 21.1%.

The report added that as of June 30 this year, although the scheduled delivery of the ship had exceeded 12 months, the ministry had not issued a letter to the company demanding late charge penalty but had merely issued a reminder to the company on the delay.The report said that according to the contract, the ships were to be delivered in stages from April 2019 to June 2023.

It said it had issued a notice of claim of RM180mil to the company because of a capping on the claim. The report said that as of Dec 31, advanced payments of RM910mil or 63.8% of progress payments have been made, although it was only at 42.7%.

 

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