PAC to Probe Defence Ministry Over Cancelled Norwegian Missile Deal, Seeks Latest Update on RM600mil Loss

SEPANG: Malaysia’s Public Accounts Committee (PAC) will summon the Defence Ministry to explain the latest developments surrounding Norway’s decision to revoke an export licence for Naval Strike Missiles (NSM) that were intended for the Royal Malaysian Navy’s Littoral Combat Ships (LCS).

PAC chairman Datuk Mas Ermieyati Samsudin said the matter would be discussed during a special briefing scheduled for June 23, which will also involve the Parliamentary Special Select Committee on Security.

According to her, the committee had previously requested information from the ministry and received an official response from Defence Ministry secretary-general Datuk Lokman Hakim Ali regarding the status of the issue following the Norwegian government’s decision.

“However, there have since been further developments. Therefore, the PAC will call the ministry to provide a detailed briefing and clarification on the matter,” she told reporters after a PAC working visit to Kuala Lumpur International Airport (KLIA) on Thursday.

The controversy stems from a €124 million (RM571.9 million) contract signed in April 2018 for the supply of Naval Strike Missile systems manufactured by Norway’s Kongsberg Defence & Aerospace. The missiles were originally designated as the primary anti-ship weapon system for the Royal Malaysian Navy’s six Littoral Combat Ships.

However, the Norwegian government reportedly withdrew the export licence for the missile system in March, only days before the scheduled delivery. The move was said to be linked to stricter controls on the export of sensitive military technologies.

Defence Minister Datuk Seri Mohamed Khaled Nordin recently revealed that the cancellation had resulted in direct losses exceeding RM600 million for Malaysia, while indirect financial implications could push the total impact beyond RM1 billion.

Meanwhile, Mas Ermieyati said PAC’s visit to KLIA formed part of its ongoing investigation into the management of public airports nationwide.

She noted that the committee is currently finalising its report, which is expected to be tabled during the upcoming Dewan Rakyat sitting beginning on June 22.

The visit allowed committee members to assess the progress of several major infrastructure projects at the airport, including the long-awaited aerotrain system and the baggage handling system (BHS).

“Site visits provide us with a clearer understanding of project implementation and allow us to verify information presented during committee proceedings,” she said.

The PAC also reviewed the operations of the ageing baggage handling system and examined the challenges associated with upgrading critical airport infrastructure.

Mas Ermieyati stressed that the committee would continue monitoring the implementation of these projects to ensure they are completed according to schedule while safeguarding public funds from wastage, leakages, and mismanagement.

— Bernama