LCS fiasco: Sub-contracting results in costs ballooning almost 3 times

The use of multi-layered subcontracting for two packages in the littoral combat ship (LCS) project ultimately resulted in the cost ballooning almost three times from RM397 million to RM1.185 billion, claimed PKR deputy president Rafizi Ramli.

In a statement today, he said the three layers of contracts involved Boustead Naval Shipyard Bhd (BNS), Contraves Advanced Devices Sdn Bhd (CAD), Contraves Electrodynamics Sdn Bhd (CED) and French defence firm DCNS (now known as Naval Group).

Rafizi alleged BNS, as the main contractor, issued two Letters of Award (LOAs) for...