JOHOR BARU, Aug 23 — Umno Youth clarified that the more than RM890 million in losses incurred by Boustead Naval Shipyard Sdn Bhd (BNS) in the littoral combat ship (LCS) project had no basis for political interference, but was due to the company’s mismanagement and irregularities.

Umno Youth executive committee member Noor Azleen Ambros said the issue of irregularities arose after its management failed to carry out its due process involving the construction of a LCS project.

He said the losses includes some payments made without the mandate and approval of the company’s board of directors.

"Additionally, the leakage of funds and the deviation of allocations involving the LCS project were due to weaknesses in its governance and project management.

"The involvement of the same individuals in all decision-making levels and important committees related to the implementation of the LCS project is also the cause of its irregularities. The presence of the same individual at each stage of project monitoring and implementation causes a conflict of interest.

"With that, the absence of checks and balances also undermines the integrity and accountability aspects of procurement, vendor appointment or original equipment manufacturer (OEM) for the LCS project,” said Noor Azleen in a posting on his official Facebook page today.

He was commenting on the findings of the LCS scandal’s forensic audit that have several important points regarding the alleged involvement of Umno leaders as well as past and present defence ministers since the LCS project began.

Noor Azleen, who is also an active youth political forum organiser, explained when there was an absence of relevant elements, the LCS project was exposed to the risk of abuse of power and breach of trust by decision makers at the management level.

"In our quest to find the truth, it is appropriate that the public make the most of important judgement as documents regarding the controversial LCS project has now been made public.

"Let us not let our minds and understanding of this issue be determined by those who aim to cause friction," he said.

Meanwhile, Noor Azleen said that PKR deputy president Rafizi Ramli’s revelation on the LCS issue over the past few weeks was not something new.

"Rafizi only selectively reveals based on the secret status reports and documents he had received earlier.

"In other words, he did not intend to tell the entire truth and deliberately created this LCS issue to raise sentiments to play with perception as well as to gain political mileage," he said.

Noor Azleen, who is also the Umno Pasir Gudang division youth chief, stressed that the findings of the forensic audit have also proven several important points.

He said there was no interference by former defence minister Datuk Seri Ahmad Zahid Hamidi and current defence minister Datuk Seri Hishammuddin Hussein in the determination of payments made to the companies.