KUALA LUMPUR, Feb 20 — The Defence Ministry said today it is at the last phase of finalising the continuation proposal for the Littoral Combat Ship (LCS) project through a Cabinet memorandum which will be presented soonest.

Its minister Datuk Seri Mohamad Hasan said there is a need to present a new paper as this would be an agreement under the new government.

"We will present a new paper because this government is not the previous government that made the agreement [in the past].

"We will present it again to the Cabinet for us to carry on with this project and when the singing of the international settlement agreement with the third party is done, we will be able to continue this project, and god-willing we will not look back and ensure that the LCS project can continue and be completed in the timeline set,” Mohamad told the Parliament today during the Minister Question Time.

Mohamad was replying to several MPs’ questions including Perikatan Nasional’s (PN) MP Nordin Ahmad Ismail, who asked the government to state the next measures taken by the Defence Ministry to salvage the LCS project.

At the same time, Mohamad said the ministry has two more steps it had to complete a part of seven recommendations given by the Public Accounts Committee (PAC) in its previous report.

"Out of the seven recommendations, six the ministry has to carry out on its own, where four have already been completed.

"Two more reports that we have yet to submit — one is a periodic report to the PAC and the other, also a periodic report to the Parliamentary Select Committee (PSC) — as the committee has yet to be set up or in the midst of being set up and has been around the last two to three months.

"Once they have been set up, we will submit the status report on our latest status,” he said.

As for questions on the weaponry procurement for the LCS ships, Mohamad said the ministry has acquired surface-to-surface missiles from the original equipment manufacturer (OEM).

Meanwhile, Mohamad also clarified that there is no reduction in the ceiling price for the six vessels, as many of the components are already available.

He also stressed that it will take some time before the LCS can sail due to two factors.

"Two things, one being the construction of the ship — when we say it’s completed, it meant that the construction of the ship has been completed at its dry dock.

"Secondly, after it’s done, there is harbour assessment test that needs to be done, and after there is sea assessment test that takes about 22 to 24 months before the ship can be commissioned,” he said adding that it will one or two years more before the ship can set sail.

A report tabled to Parliament on August 4 by the PAC highlighted the controversial procurement deal after none of the six LCS ordered was delivered despite a contract of RM9.13 billion being signed a decade ago.

According to the PAC, the government has paid RM6.08 billion — or two-thirds of the total cost — to local contractor Boustead Naval Shipyard (BNS), although none of the ships has been delivered.