KUALA LUMPUR: The Public Accounts Committee (PAC) today unanimously agreed to launch proceedings into the Malaysian Maritime Enforcement Agency's (MMEA) purchase of Offshore Patrol Vessels (OPV) under the Home Ministry.
PAC chairman Wong Kah Woh said, following discussions on the matter, PAC was of the opinion that MMEA and the Home Ministry were required to offer an explanation to Parliament through the committee to help the public understand the actual cause behind the delay of the vessels' delivery.
"It is necessary for PAC to begin proceedings on this issue, in line with its authority under Standing Order 77(1)(d), which defines matters which the committee can check on.
"PAC will also use its authority under Standing Order 83(2) as well as Article 11(b) of the Public Circular 2, 1982 of the Prime Minister's Department to manage the proceedings," he said in a statement today.
Wong said PAC will be summoning officials from the Home Ministry and MMEA for their explanations.
It will also be summoning the Finance Ministry and the company awarded the contract., he said, adding that the date and time of the proceedings will be announced soon.
The contract for the construction of three OPVs for MMEA was awarded to Malaysian company THHE Destiny in 2017.
Reports had previously stated that its principal company, TH Heavy Engineering Bhd, which has been classified as PN17, now has accumulated losses of RM629.8 million and debts of RM165 million, raising questions over its ability to complete the construction of the OPVs.
The OPVs were meant to be able to undergo sea operations for a maximum of 21 days without needing to return to base to resupply.
The OPVs, measuring 83m long and 13.7m wide, can conduct long-range surveillance up to the perimeter of the Exclusive Economic Zone (EEZ), well beyond the range of small patrol vessels.
MMEA, in a press conference previously, had said that the Covid-19 pandemic was the reason behind the delay in the handover of the vessels, which was supposed to have been done last year.
It is understood that the OPVs are still under construction in Pulau Indah, Selangor.