Mindef claims RM162.7mil from armoured vehicle supplier
Its Deputy Minister, Adly Zahari, said the notice for the late penalty claim was issued due to delays in the delivery of 68 armoured vehicles between 2020 and 2023.
He said this in response to the Auditor General's Report 2/2025, which revealed that the ministry had failed to collect RM162.75 million in penalties imposed on its supplier for the armoured vehicle contracts.
Adly also said the company subsequently submitted a response and appealed for the late penalty to be waived, citing exceptional circumstances caused by the Covid-19 pandemic and the Russia-Ukraine war.
"The appeal was presented on May 6, 2025, and the company was imposed a penalty totalling RM162 million, along with a performance bond amounting to RM53 million.
"The remaining penalty sum will be recovered through offset arrangements in current contracts or collected separately from the company," he said during the ministry's winding-up session on the report.
On Monday, the AG's Report revealed weaknesses in the Malaysian Army's management of armoured vehicle contracts, including the failure to collect RM162.75 million in penalties imposed on its supplier.
According to the report, the penalties stemmed from supply delays involving 70 Gempita units, delivered between August 2020 and December 2022.
The assets were delivered up to 1,048 days past the agreed schedule.
Despite the delays, the ministry had made full payment of RM7.5 billion for the contract by June 2023.
Commenting further, Adly said the ministry acknowledges weaknesses in enforcing contract terms and is currently in the process of developing a contract monitoring system to assist officers in overseeing contracts.
"This is to ensure that even if we grant an extension of time, we do not delay the imposition of late penalties until the project is completed," he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
3 hours ago
- The Star
Klang Valley to remain mainstay of industrial hubs
Knight Frank Malaysia said that between 2020 and 2024, annual industrial transaction values in the Klang Valley and Johor Baru grew by an 18% and 40% four-year compounded annual growth rate, respectively. PETALING JAYA: Klang Valley will likely remain the largest industrial hub in the country on the back of its relatively more mature industrial parks, infrastructure and strategic access to ports, according to Kenanga Research. Specifically on Johor, the research house gathered that its industrial and data centre boom commenced with the launch of YTL Green Data Centre Park in Kulai in August 2022. This kick-started interests by large multinationals in the state, further fuelling its investments into that space, it noted. The research house said with the officiation of Johor's Forest City Special Financial Zone in September 2024 and Johor-Singapore Special Economic Zone in January 2025, in addition to the increase in cross-border activities with Singapore stemming from the upcoming launch of the Rapid Transit System link, it believes that activities and investments into the state could remain buoyant in the near-to-medium term. According to property consultancy company Knight Frank Malaysia, between 2020 and 2024, annual industrial transaction values in Klang Valley and Johor Baru (including Kulai) grew by an 18% and 40% four-year compounded annual growth rate, respectively. While this could be attributed to pent-up demand coming out of the Covid-19 pandemic, it ties in with the increase of capital investments injected into the mentioned regions, Kenanga Research said. Kenanga Research believes Penang remains a hot spot for industrial activity, mostly dominated by the technology and semiconductor sectors. The brokerage recently co-organised a real estate event with Knight Frank on the property consultancy's exclusive launch of its half-yearly real estate highlights for the first half of 2025. Focusing on high-rise residential trends, Knight Frank highlighted that transaction volumes and values in Kuala Lumpur had picked up mostly in 2022, coming out of the pandemic. Knight Frank found it worth noting as well that the growth of average transaction values had outpaced volumes, reflecting a higher appetite by homebuyers for higher-priced homes. From Kenanga Research's checks among property developers and mortgage lenders, the pick-up in transaction volumes in 2022 could have been made up by more affordable offerings (RM300,000 to RM500,000) which led market launches at that time, owing to development being stalled by the movement control orders between 2020 and 2021. On the data centre front, there was a surge in data centre investments post-Covid-19, with total investment reaching RM160bil in 2024, more than triple the amount in 2023. However, the sector is now entering a more mature execution phase of announced plans, Knight Frank noted. In the first half of 2025, digital investments totalled RM42.6bil versus RM66.2bil in the similar period last year, with over 70% allocated to data centres and cloud infrastructure. While Johor continues to lead in data centre development, Klang Valley has also seen healthy activity.
Borneo Post
11 hours ago
- Borneo Post
Madius proposes new national councils for economic coordination
Madius KUALA LUMPUR (Aug 6): Tuaran Member of Parliament Datuk Seri Panglima Wilfred Madius Tangau has urged the Federal Government to promptly fulfil Sabah's constitutional right to 40 per cent of net revenue collected from the state, while also calling for the establishment of three new national councils to strengthen coordination in critical economic sectors. Debating the 13th Malaysia Plan (13MP) in the Dewan Rakyat on Wednesday, Madius stressed that the long-overdue revenue entitlement must be honoured in accordance with Article 112C and the Tenth Schedule of the Federal Constitution. 'Negotiations were already concluded in 1963 during the formation of Malaysia. As the generation entrusted with the legacy of the Malaysia Agreement 1963, we must now implement what was agreed. Why the delay?' he questioned. The UPKO Honorary President emphasised that this was not a new demand, but a constitutional right that remains unfulfilled, further warning that Sabahans must no longer be made to bear the brunt of poverty due to the continued failure to implement what is lawfully theirs. He noted that more than 80 per cent of the nation's RM1.3 trillion debt has been spent in Peninsular Malaysia, while Sabah, which contributes substantially to national revenue, continues to receive a disproportionate share of allocations. 'This disparity hampers Sabah's ability to develop key sectors such as agriculture, fisheries, livestock and basic infrastructure,' he said. 'If Sabah were given back the 40 per cent revenue as stated in the Constitution, we wouldn't have to keep begging for federal funds to build roads, hospitals, or develop our industries,' Madius added. He also cautioned that Malaysia's aspiration to become the world's 30th largest economy would remain a dream if the constitutional rights of Sabah continue to be sidelined. 'If Sabah prospers, Malaysia prospers. But if Sabah's rights continue to be denied, it is not only unjust, it also undermines the very foundation upon which Malaysia was formed. 'What we need is not more negotiations, but the political will to implement what is already enshrined in the Constitution, the highest law of the land,' he said. In the same debate, Madius also called for the immediate establishment of three national bodies – the National Agriculture Council, the National Fisheries Council and the National Livestock Council – to enhance coordination and policy coherence between the federal and state governments. He said the creation of these councils is crucial to align legislation, strategy, budgets and programme implementation, particularly in light of Sabah's autonomy in these sectors as guaranteed by the Federal Constitution and the spirit of the Malaysia Agreement 1963. 'The aim is to close the development gap between regions, especially for Sabah, which has immense potential but remains left behind due to poor policy alignment and lack of federal support,' he stated. Citing examples, Madius said Sabah, despite being the largest fish producer in Malaysia contributing 25 per cent to national output, has only one fish landing facility built using state funds. 'In contrast, there are 42 such facilities in Peninsular Malaysia, five in Sarawak and one in Labuan, all developed by federal agencies such as the Malaysian Fisheries Development Authority (LKIM). Just imagine Sabah's potential if we received the proper budgetary support,' he remarked. In the livestock sector, Sabah has already achieved self-sufficiency in eggs and fresh milk but remains low in ruminant meat production. 'With vast and suitable land resources, Sabah could increase output significantly if strategic support and adequate funding are provided,' he said. Touching on agriculture, he noted that rice production in Sabah continues to lag due to inadequate irrigation systems, outdated drainage infrastructure, and a lack of processing facilities, all contributing to lower productivity compared to the Peninsula. Madius further reminded the Dewan Rakyat that the proposal to establish these three national councils had been included in Pakatan Harapan's 15th General Election manifesto, and urged the government to now honour that commitment. 'This is the right time for the government to act on this promise, to ensure national food security and promote equitable prosperity for all regions,' he said.
Daily Express
12 hours ago
- Daily Express
No need for new talks, just political will to implement MA63: Madius
Published on: Wednesday, August 06, 2025 Published on: Wed, Aug 06, 2025 Text Size: KUALA LUMPUR: Tuaran MP Datuk Seri Wilfred Madius Tangau ( pic ) has urged the Federal Government to implement the 40 per cent revenue entitlement due to Sabah under Article 112C and the Tenth Schedule of the Federal Constitution without further delay. He reiterated the call while debating the 13th Malaysia Plan (13MP) in the Dewan Rakyat on Wednesday. Advertisement Madius questioned why the agreed financial rights under the Malaysia Agreement 1963 (MA63) remain unfulfilled despite being constitutionally guaranteed. The Upko Honorary President said Sabahans should not continue to suffer from underdevelopment and poverty due to the failure to deliver the promised revenue returns. He pointed out that more than 80 per cent of the country's RM1.3 trillion debt has been spent in Peninsular Malaysia, while resource-rich Sabah remains inadequately funded. The former Sabah Deputy Chief Minister stressed that Sabah could independently fund basic infrastructure and economic development if it received its rightful 40 per cent share. Advertisement He also questioned the status of proposed 12MP projects and the Royal Commission of Inquiry (RCI) report on undocumented migrants in Sabah, which he said still lacked clear updates. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
