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KUALA LUMPUR — The payment of RM571.9 million to the Norwegian supplier of the Naval Strike Missile (NSM) anti-ship missile system for the Littoral Combat Ship (LCS) project was not an advance payment but was made in accordance with the contract’s progress, the Ministry of Defence (MINDEF) said.

MINDEF said that when the payment was made, all NSM systems had been fully manufactured, successfully passed the tests set by the Royal Malaysian Navy (RMN), and were ready for delivery to Malaysia.

“Therefore, the payment was made in accordance with the contract terms, and not as an advance payment without physical progress.

“The claim that the contract did not contain clauses protecting the government’s interests is inaccurate. The contract includes provisions allowing the government to take action in the event of non-performance or breach of contractual obligations by the relevant party,” the ministry said in a written reply on the Parliament portal today.

According to the ministry, the revocation of the export licence by the Norwegian government was beyond the control of both the Malaysian government and the supplier. 

In this regard, the ministry said it is invoking the contractual provisions available to safeguard the government’s interests, including pursuing claims to recover the payment and related damages.

MINDEF was responding to a question from Hassan Abdul Karim (PH-Pasir Gudang) regarding the procurement of NSM anti-ship missiles for the LCS project, including allegations that the government had released the full contract payment of RM571.9 million too early and that the procurement contract lacked clauses to protect Malaysia’s interests.

Meanwhile, MINDEF stressed that the issue has not affected the current operational readiness of the Malaysian Armed Forces, as the RMN continues to have existing assets and weapons systems to carry out its responsibility of defending the country’s maritime sovereignty.

“The revocation of the export licence does not affect the LCS delivery schedule. At the same time, the RMN is evaluating and assessing missile systems that could potentially replace the NSM system,” it said in reply to a question from Mohd Kurniawan Naim Moktar (BN-Kinabatangan) on the implications for the RMN’s operational readiness. — BERNAMA

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LABUAN — Operations at Labuan Airport were disrupted today after an old bomb, believed to be from the Second World War, was found at 3.45 pm today about 200 metres from the airport runway on land owned by the Royal Malaysian Air Force (RMAF) near Kerupang.

The latest discovery came just days (June 26) after several suspected World War II bombs were unearthed at the same location, which also disrupted airport operations.

The police and RMAF personnel are working on removing the bomb for demolition.

Labuan Police chief Supt Wan Mohd Firdaus Wan Zaki said the situation was under control, and that bomb disposal teams were carrying out the safe removal process.

He advised members of the public to remain calm, and not to spread unverified or false information which could cause unnecessary panic,” he said.

The disruption has affected several scheduled flights, with departures to Kuala Lumpur, Kota Kinabalu and Miri delayed, while a flight from Kuala Lumpur to Labuan was diverted to Miri.

Airport operations are expected to resume after 8 pm once the bomb removal and demolition operation is completed and the area is declared safe by the authorities. — BERNAMA

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OPPOSITION Leader Datuk Seri Hamzah Zainudin (picture) has called on the government to explain the presence of former Malaysian Anti-Corruption Commission (MACC) chief commissioner Tan Sri Azam Baki at a National Financial Crime Prevention Centre (NFCC) advisory board meeting.

Speaking at a press conference in Parliament today, Hamzah said he raised the issue following several media queries about Azam’s attendance.

“On behalf of the media, I would like to ask the government what is the justification for Azam’s involvement with the NFCC when he himself is under investigation over several issues,” he said.

The issue arose following a post on the Attorney General’s Chambers’ (AGC) official Facebook page showing Attorney General Tan Sri Mohd Dusuki Mokhtar chairing the NFCC advisory board meeting, with Azam among those in attendance, according to The Star.

According to the AGC, the meeting focused on financial crime prevention initiatives and strategic inter-agency cooperation aimed at strengthening efforts to combat financial crimes.

Azam has been under public scrutiny since February after a Bloomberg report alleged that he held millions of shares in a financial services company.

Following the allegations, the government established a three-member task force led by Mohd Dusuki to investigate Azam’s past shareholdings.

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FUGITIVE financier Low Taek Jho, better known as Jho Low (picture), is reportedly among those being considered for a presidential pardon by US President Donald Trump, according to a report by The Atlantic.

The Star, citing the American magazine, reported that Low is among a list of individuals being considered as Trump weighs granting up to 250 pardons to mark the United States’ 250th birthday.  

However, the report said a White House official later disputed the claim, stating that while the president has the final authority over pardon decisions, the individuals named in the report “are not on the radar of the pardon team.”

The development follows a report by The Wall Street Journal in May that Low had formally sought a presidential pardon in an effort to have criminal charges against him in the US dropped.

The application, filed under the name Taek Jho Low, was previously reported to have appeared on the US Department of Justice pardon application website with a status of “pending” under the category “Pardon after Completion of Sentence”.

In Malaysia, Prime Minister Datuk Seri Anwar Ibrahim has dismissed speculation over the matter, saying the government would not consider any pardon application involving Low, as court proceedings against the fugitive businessman remain ongoing. He also said any decision by the US would be a matter for its own authorities.

US prosecutors have accused Low of orchestrating the misappropriation of approximately US$4.5 billion from 1Malaysia Development Bhd (1MDB) and laundering the proceeds through the US financial system. Low has consistently denied any wrongdoing.

In 2024, Low reached a settlement with the US Department of Justice, agreeing to forfeit US$100 million to resolve a civil forfeiture lawsuit.

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