The government will proceed with a "mutual termination" of its contract with a shipbuilding company after it failed to deliver two of the three promised Offshore Patrol Vessels (OPVs) for the Malaysian Maritime Enforcement Agency (MMEA), says Datuk Seri Saifuddin Nasution Ismail.
Speaking on Thursday (Feb 13), the Home Minister said the Cabinet approved the decision after the company managed to deliver only one vessel, KM Tun Fatimah, which was also delayed.
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Speaking on Thursday (Feb 13), the Home Minister said the Cabinet approved the decision after the company managed to deliver only one vessel, KM Tun Fatimah, which was also delayed.
Read more at https://tinyurl.com/mrt3kcva
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NewsTranscript
00:00One more thing about the Maritime OPV ship, based on the answer from the people's committee on 4th of April,
00:09the TDSB company has been added to the contract on 31st of December, 2024,
00:15and has been given an LAD of more than Rp. 20 million.
00:18Has the company already paid the LAD from the government?
00:23And what is the status of the OPV?
00:27I will briefly explain about the OPV.
00:30Originally, we were supposed to get three,
00:34but we only got one in Pulau Indah, Tun Fatimah.
00:40Now it is on duty, in Belaya.
00:43The other two, as mentioned earlier,
00:46the decision of the Cabinet was for KDN to return to the company
00:52for mutual termination.
00:56Mutual termination.
00:57So if the mutual termination ends with any payment implications,
01:01that is part of the process of mutual termination.
01:05The Cabinet's instructions to me and KDN is,
01:09for the other two,
01:12to carry out mutual termination.
01:14Okay.
01:15So next,
01:17next, the OPV is a necessity.
01:20If we are promised three,
01:22and we have spent a lot.
01:23This is something that we inherited from the old administration.
01:27We are not playing blame game.
01:30We just want to tell you where we can solve this problem.
01:35If the problem is with the budget,
01:38I still remember,
01:39when I first joined KDN,
01:41to prepare for it, we still needed around Rp. 150 million.
01:46That was among the documents that I presented to the Cabinet
01:50and the Finance Minister approved it.
01:52So with the approval, we prepared one.
01:54For the other two,
01:55the approval rate was around 60%-70%
01:58and they put the date of approval and so on.
02:01But even that was not delivered.
02:02So,
02:03the Cabinet's decision was to carry out mutual termination.
02:06That is the background.
02:08What will we continue?
02:10We will continue.
02:11Because the work is underway.
02:13More than Rp. 600 million
02:15for this project. We will prepare one.
02:18If we add another Rp. 150 million,
02:21it will not be one.
02:22So we have to find a way
02:23so that
02:24one,
02:25APMM as a user,
02:27do not lose the ship.
02:29We have to maintain 590,000 km
02:32of our sea border.
02:34If we have the assets, we cannot do it.
02:37That is also the reason why
02:39we signed a contract
02:42with Turkey, the mother ship.
02:44Okay?
02:44So, APMM,
02:47they hope
02:49that this OPV can be prepared.
02:51That is KSU's tasking.
02:53I set the direction that
02:56it must be continued.
02:58Before that, if the problem is
03:00in the contractor's negligence,
03:02mutual termination will be carried out.
03:04The next process,
03:07KSU will handle the next process.
03:10Right?
03:11Yes, that's right.
03:12Okay.
03:13What is LED?
03:14Sorry, LED.
03:16Is it ready?
03:17I have to see the details.
03:19What I can assure is that
03:21the mutual termination process
03:23will be carried out.
03:24I just want to understand that
03:26the two OPVs will not be continued.
03:28We at KDN said that we will continue.
03:30Yes, that's right.
03:32Alright?