Malaysia’s ex-navy chief pleads not guilty to 3 charges in ships contract scandal

A former Malaysian navy chief, who was also previously a high-ranking official in contractor firm Boustead Naval Shipyard (BNS), on Tuesday (Aug. 16) pleaded not guilty to three charges of criminal breach of trust in connection with the littoral combat ship (LCS) scandal.

Ahmad Ramli Mohd Nor, 78, was charged with approving payments of RM21.08 million (S$6.5 million) to three Singapore-based companies without the agreement of the company’s board of directors.

One of the charges against the former BNS managing director involved a payment of about RM13.5 million to Setaria Holdings Limited that was allegedly done without BNS board approval.

Two other charges involved payments of RM1.36 million to JSD Corp and RM6.18 million to Sousmarin Armada, purportedly without BNS board approval.

All three offences were alleged to have taken place between July 2010 and May 2011.

Ahmad Ramli was navy chief from October 1996 until his retirement in 1998 after having served the Royal Malaysian Navy for 35 years.

The criminal breach of trust offence falls under Section 409 of the Penal Code and carries a maximum 20 years’ imprisonment, whipping and fine upon conviction.

Judge Suzana Hussin set bail at RM500,000 for Ahmad Ramli and fixed Nov 24 for mention.

Last week, the Malaysian Anti-Corruption Commission said that it had completed investigations into the delay of the RM9.13 billion LCS project.

Six LCS were commissioned in 2011, without open tender, to be built by BNS and delivered from 2019.

So far, RM6 billion of the RM9 billion cost has been paid out, but the designs for these vessels have yet to be completed.

Since these facts were revealed earlier this month by the bipartisan Public Accounts Committee, there have been growing calls to institute criminal proceedings and set up a royal commission of inquiry into the troubled deal.

Senior Defence Minister Hishammuddin Hussein has said the first of these ships is now only scheduled to be ready “in one or two years”.

He, as well as other Umno bigwigs who have helmed the defence portfolio, such as former premier Najib Razak and party president Zahid Hamidi, are now under fire for signing off on the deal and its payments.

Shipbuilder BNS is a subsidiary of LTAT, the armed forces pension fund.

There has been much finger pointing over the stealth frigates, and memes abound on social media about “invisible ships”.

Zahid, who headed the Defence Ministry from 2009 to 2013, when letters of intent and the award were handed to BNS, has denied any responsibility. Najib was prime minister and finance minister from 2009 to 2018. By 2018, the project was 30 per cent behind schedule.

SOURCE: NEWS AGENCIES