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
New Straits Times
34 minutes ago
- New Straits Times
Eight bills passed during second week of Dewan Rakyat sitting
KUALA LUMPUR: The tabling of the 13th Malaysian Plan (13MP) for the period 2026 to 2030 dominated proceedings in the second week of the Dewan Rakyat session. Prime Minister Datuk Seri Anwar Ibrahim, in tabling the 13MP, themed "Redesigning Development", said a total of RM611 billion in investments would be required to drive the country's development over the five-year period. In his speech, which lasted nearly 90 minutes, Anwar, who is also finance minister, said the 13MP is anchored on three main principles, namely, the establishment of a sovereign and dignified nation, a people-centric Madani social system, and the transition to an artificial intelligence-driven economy. The 13MP is structured around four key pillars, namely, strengthening economic resilience, enhancing social mobility, accelerating the implementation of the Public Service Reform Agenda, and improving the well-being of the people alongside environmental sustainability. According to the Dewan Rakyat calendar, members of parliament will participate in the debate session starting this Monday until August 14, followed by ministerial responses for four days from Aug 18 to 21. The Second Meeting of the Fourth Term of the 15th Parliament is scheduled to continue for 24 days until Aug 28. During this week's sitting, the Dewan Rakyat passed eight bills, namely the Cross-Border Insolvency Bill 2025, the Poisons (Amendment) Bill 2025, the Fees (Pengkalan Kubor Ferry) (Validation) Bill 2025 and the Fisheries (Amendment) Bill 2025. Others are the Offenders Compulsory Attendance (Amendment) Bill 2025, the Education (Amendment) Bill 2025, the Electricity Supply (Amendment) Bill 2025 and the Energy Commission (Amendment) Bill 2025. Meanwhile, the Countervailing and Anti-Dumping Duties (Amendment) Bill 2025, which aims to protect local industries from unfair trade practices and ensure the competitiveness of Malaysian products, was tabled for first reading. Among the highlighted issues this week was the Operation Safe Lungs (Op Selamat PaPa), which will be launched by the Health Ministry to enhance enforcement of the Smoking Products Control Act for Public Health 2024, especially concerning electronic cigarettes or vapes. Health Minister Datuk Seri Dr Dzulkefly Ahmad said the operation is aimed not just at protecting male smokers, but also women and families exposed to passive smoking. Meanwhile, the Education Ministry has completed the Vertical School Development Planning Guide which incorporates key principles such as student safety and supervision, curriculum-friendly, sustainable and ease of maintenance. Deputy Education Minister Wong Kah Woh said the guide would be presented to the cabinet for approval. The tragic case involving the death of Form One student Zara Qairina Mahathir also drew serious concern during the debate on the Education (Amendment) Bill 2025. MPs from both government and opposition blocs called for stronger measures against bullying and for improved safety in schools. In response, Education Minister Fadhlina Sidek, during the winding-up session of the bill, assured that a transparent investigation would be conducted to ensure justice is served. — BERNAMA
Malay Mail
34 minutes ago
- Malay Mail
Dewan Rakyat passes eight Bills as 13MP sets bold vision for Malaysia 2026–2030
KUALA LUMPUR, Aug 1 — The tabling of the 13th Malaysian Plan (13MP) for the period 2026 to 2030 dominated proceedings in the second week of the Dewan Rakyat session. Prime Minister Datuk Seri Anwar Ibrahim, in tabling the 13MP, themed 'Redesigning Development', said a total of RM611 billion in investments would be required to drive the country's development over the five-year period. In his speech, which lasted nearly 90 minutes, Anwar, who is also the Minister of Finance, said the 13MP is anchored on three main principles, namely the establishment of a sovereign and dignified nation, a people-centric Madani social system, and the transition to an artificial intelligence-driven economy. The 13MP is structured around four key pillars: strengthening economic resilience, enhancing social mobility, accelerating the implementation of the Public Service Reform Agenda, and improving the well-being of the people alongside environmental sustainability. According to the Dewan Rakyat calendar, Members of Parliament will participate in the debate session starting this Monday until August 14, followed by ministerial responses for four days from Aug 18 to 21. The Second Meeting of the Fourth Term of the 15th Parliament is scheduled to continue for 24 days until Aug 28. During this week's sitting, the Dewan Rakyat passed eight bills, namely the Cross-Border Insolvency Bill 2025, the Poisons (Amendment) Bill 2025, the Fees (Pengkalan Kubor Ferry) (Validation) Bill 2025 and the Fisheries (Amendment) Bill 2025. Others are the Offenders Compulsory Attendance (Amendment) Bill 2025, the Education (Amendment) Bill 2025, the Electricity Supply (Amendment) Bill 2025 and the Energy Commission (Amendment) Bill 2025. Meanwhile, the Countervailing and Anti-Dumping Duties (Amendment) Bill 2025, which aims to protect local industries from unfair trade practices and ensure the competitiveness of Malaysian products, was tabled for first reading. Among the highlighted issues this week was the Operation Safe Lungs (Op Selamat PaPa), which will be launched by the Ministry of Health to enhance enforcement of the Smoking Products Control Act for Public Health 2024 (Act 852), especially concerning electronic cigarettes or vapes. Health Minister Datuk Seri Dr Dzulkefly Ahmad said the operation is aimed not just at protecting male smokers, but also women and families exposed to passive smoking. Meanwhile, the Ministry of Education has completed the Vertical School Development Planning Guide which incorporates key principles such as student safety and supervision, curriculum-friendly, sustainable and ease of maintenance. Deputy Minister of Education Wong Kah Woh said the guide would be presented to the Cabinet for approval. The tragic case involving the death of Form One student Zara Qairina Mahathir also drew serious concern during the debate on the Education (Amendment) Bill 2025. Members of Parliament (MPs) from both government and opposition blocs called for stronger measures against bullying and for improved safety in schools. In response, Education Minister Fadhlina Sidek, during the winding-up session of the Bill, assured that a transparent investigation would be conducted to ensure justice is served. — Bernama
Borneo Post
an hour ago
- Borneo Post
Egg prices remain steady in Kuching despite end of blanket subsidies
Traders are maintaining their prices, with no significant changes observed today. – Photo by Aileen Yap KUCHING (Aug 1): Egg prices at several markets in Kuching have remained stable despite the implementation of the government's restructured egg subsidy, which takes effect today. A survey by The Borneo Post found that traders are maintaining their prices, with no significant changes observed following the shift from blanket subsidies to targeted assistance for poultry farmers. The Ministry of Agriculture and Food Security recently announced the move as part of a phased, targeted approach aimed at ensuring a consistent egg supply and price stability for consumers nationwide. Between February 2022 and December 2024, the government allocated nearly RM2.5 billion in chicken egg subsidies to cushion the impact of Covid-19 and global supply chain disruptions on the public and the poultry industry. Although blanket subsidies have ended, the retail market remains unaffected for now. egg subsidy Kuching stable prices
