Former Navy Chief Discharged in LCS Scandal, Leaving Involvement Unanswered

Former Malaysian Navy Chief Granted Discharge in LCS Scandal

Malaysia's former navy chief, Ahmad Ramli Nor, was granted a discharge not amounting to an acquittal on Wednesday, March 12th, in connection with the littoral combat ship (LCS) scandal. The decision was made by Kuala Lumpur Sessions Court judge Suzana Hussin after considering submissions from both parties and a medical report from Kuala Lumpur Hospital confirming Ramli's unfitness for trial.

The LCS scandal revolves around a RM9.14 billion (US$2.06 billion) contract awarded by the Ministry of Defence to Boustead Naval Shipyard Sdn Bhd through direct negotiation in 2011. The contract involved the construction of six ships, with the first five scheduled for delivery to the navy by August 2022. However, none of the ships have been delivered despite the government paying RM6.08 billion, or two-thirds of the total cost.

Ramli, who served as the commander of the Malaysian Royal Navy from 1996 to 1998 and later as the managing director of Boustead Naval Shipyard, was charged with three counts of criminal breach of trust in August 2022. He contested the charges, which alleged that he authorized payments totaling more than RM21.08 million to three Singapore-based companies without the approval of Boustead's board of directors between 2010 and 2011.

Approving a payment of more than RM13.5 million to Singapore's Setaria Holding Limited between July 26, 2010, and March 25, 2011.

Approving a transfer of about RM1.4 million to JSD Corporation Pte Ltd between April 19, 2011, and May 4, 2011.

Authorizing another payment of nearly RM6.2 million to Sousmarin Armada Ltd between October 28, 2010, and November 22, 2010.

With Ramli's discharge not amounting to an acquittal, the question of his involvement in the LCS scandal remains unanswered. The scandal continues to be investigated, and further developments are expected in the future.