Sunken cost: The revelation regarding the Navy was included in the A-G’s Report 2/2024 tabled in the Dewan Rakyat yesterday.
KUALA LUMPUR: Spare parts for Royal Malaysian Navy ships worth RM384.49mil were not utilised, resulting in wasteful expenditure, according to the Auditor-General’s Report 2/2024.
The report also found weaknesses in the procurement of new vessels, which were not on schedule.
The report, tabled in the Dewan Rakyat yesterday, found that spare parts at the western fleet supply depot (DBAB) and eastern fleet supply depot (DBAT) were obsolete.
“DBAB had 1.62 million units of spare parts worth RM381.69mil which were not utilised, with the last production record being between 1969 and 2017.
“DBAT had 6,040 units of spare parts worth RM2.8mil that were not utilised with the last used production record being between 2017 and 2021.
“Overall, the management of the spare parts was dissatisfactory. This was because spare parts worth RM384.49mil were unused and has caused wastage,” the A-G said.
An audit conducted on DBAT in February 2023 found there was damage on the panel of the Automated Warehouse Retrieval System’s (AWRS) monitor since October 2021.
It also found that besides the Littoral Combat Ships (LCS) that were not delivered as of the end of December 2022, the Defence Ministry was also supposed to procure 10 Littoral Mission Ships (LMS) under the 11th and 12th Malaysia Plan. However, only four had been received as of Dec 31, 2022.
The Navy was also supposed to receive two Multi Role Support Ships (MRSS) under the 12th Malaysia Plan (12MP) but this has been delayed to the 13th Malaysia Plan (13MP) due to the lack of funds.
“This has led the Navy to continue using ships that have exceeded their shelf life for operations,” the A-G’s Report said.
In its reply, the Defence Ministry said for DBAB, the routine W6 kit was not used because all patrol craft vessels had been delivered to the Malaysian Maritime Enforcement Agency (MMEA).
As for DBAT, the ministry said the obsolete spare parts had been replaced with other parts. Apart from that, the vessel that was supposed to use these parts has been repowered and commissioned.
It also said the AWRS had been repaired as of June 28, 2023 and had started operations on Sept 12, 2023.
On the six LMS ships, the ministry said it is in the midst of finalising the company to supply three LMS Batch 2 ships after receiving approval from the Cabinet on Aug 23, 2023.
“The procurement plan for the remaining three LMS will be included under 13MP,” it added.
The ministry also said that the procurement of the MRSS was postponed to the 13MP due to financial constraints.
The A-G recommended the Navy ensure that vessel maintenance is conducted on time with sufficient financial resources, adding the Navy must come up with an action plan for the obsolete parts.
