Mindef should have got AGC’s approval before signing LCS supplementary contract, says PAC

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Mindef should have got AGC’s approval before signing LCS supplementary contract, says PAC
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The defence ministry’s decision to bypass the Attorney-General’s Chambers in signing the contract could have legal implications for the government, says the committee.

PETALING JAYA: The Public Accounts Committee has admonished the defence ministry for not getting the Attorney-General’s Chambers’ approval before signing a supplementary contract for the navy’s troubled littoral combat ship project earlier this year.

In its progress report into the LCS’s development issued today, the PAC said that the AGC had informed the defence ministry that “further action” was required for supplementary contract 6 , adding that the agreement should have been submitted to the AGC before signing. “The defence ministry’s decision to bypass the AGC in signing SA6 should not have happened as it could have legal implications for the government. This cannot be repeated,” said the PAC.

The SA6, which was signed between then defence ministry secretary-general Muez Abd Aziz and Boustead Holding Bhd chairman Nazim Rahman on May 26, detailed project deliverables and other issues in reviving the LCS project.

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