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New Straits Times
a day ago
- Business
- New Straits Times
Army urges stronger oversight in wake of armoured vehicle contract delays
LENGGONG: The Malaysian Army has called for stronger procurement oversight and contract enforcement mechanisms. This follows revelations that RM167 million in late penalties remain uncollected from the contractor responsible for delivering the Gempita armoured vehicles. The issue, highlighted in the Auditor General's (AG) report, underscores ongoing weaknesses in defence procurement enforcement, particularly regarding contractual penalties for delays. Army chief General Tan Sri Muhammad Hafizuddeain Jantan said that while the army played a key role as the end-user of defence assets, responsibility for contract enforcement lay squarely with the Defence Ministry (Mindef). "We report delays when they happen, but the enforcement of penalties is under Mindef, as the contract manager. "This isn't the first time such a situation has occurred, but this case was highlighted by the Auditor-General," he said. He told reporters this after attending the closing ceremony of Exercise Keris Strike Series 30/2025 — a trilateral military exercise involving the United States Army Pacific Command and the Australian Army — held at Felda Lawin Selatan here today. He confirmed that RM167 million in late delivery penalties linked to delays in supplying the Gempita armoured vehicles have yet to be collected. "There's no evidence of leakage or misconduct, but clearly, procedures may not have been followed strictly. "In the future, we will need to remind contract managers to ensure enforcement and collections are done properly," he said. Hafizuddeain said the penalties would be collected in stages, including through the drawing of performance bonds and by offsetting the amount against future contracts with the same company. He emphasised the reputational risks posed to the military, stressing that although the army was not directly involved in contract management, it continued to monitor procurement projects closely. "We continuously monitor the situation because we do not want such matters to be reported and damage the reputation or good name of the army. "It's just that perhaps the procedures weren't fully followed in managing the contract. So, in the future, we'll be more careful. "Maybe we'll need to remind the contract managers to ensure they make the necessary collections, because we still have many ongoing projects," he said. On July 21, the AG uncovered 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 AG's Report 2/2025, 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 Defence Ministry had made full payment of RM7.5 billion for the contract by June 2023.


New Straits Times
23-07-2025
- New Straits Times
Saleswoman loses RM167k in 'Bank of America' VIP scam
JOHOR BARU: A 63-year-old gold shop saleswoman was conned out of RM167,207 in a fake "VIP membership" scam allegedly linked to Bank of America, complete with promises of charity perks and private jet rides. Johor Baru South police chief, Assistant Commissioner Raub Selamat, said the woman befriended a man through Facebook while working in Singapore on March 23, and later continued chatting via WhatsApp. The suspect allegedly convinced the victim to make frequent donations to a fictitious orphanage club under the name of Bank of America, with the bait of gaining VIP status and access to exclusive corporate rewards, including private jet travel. Between March 23 and July 21, while in Johor Baru, the woman made 19 transactions totalling over RM167,000 to five different bank accounts. The accounts were held under various names. "The victim began to suspect she was being duped after repeated payments failed to secure her promised VIP status and the suspect continued demanding more funds," Raub said in a statement today. Checks via the Commercial Crime Investigation System (CCIS) revealed no prior scam records tied to the bank accounts, but police are investigating under fraud-related provisions. He urged the public to be cautious when approached with dubious online offers, especially those involving personal financial transactions. Information on scams can be channelled to the National Scam Response Centre at 997 or verified via the police's Semak Mule portal at