Kuala lumpur: The payment of RM571.9 million to the Norwegian supplier for the Naval Strike Missile (NSM) anti-ship missile system, intended for the Littoral Combat Ship (LCS) project, was made post-completion and not as an advance, as per the Ministry of Defence (MINDEF).

According to BERNAMA News Agency, MINDEF clarified that the NSM systems were fully manufactured, successfully tested by the Royal Malaysian Navy (RMN), and ready for delivery before the payment was executed. The ministry emphasized that the payment adhered to the contract terms, countering claims that it was an advance payment without physical progress.

The ministry further stated that the contract includes clauses to protect the government's interests, allowing for actions in case of non-performance or breaches by the involved parties. Additionally, the revocation of the export licence by Norway was beyond the control of both the Malaysian government and the supplier.

In response to these challenges, MINDEF is leveraging contractual provisions to safeguard governmental interests, which includes pursuing claims to recover the payment and related damages. This was in reply to a query from Hassan Abdul Karim (PH-Pasir Gudang) regarding the NSM procurement for the LCS project and associated allegations about premature payment and inadequate contractual protection.

Furthermore, MINDEF assured that the revocation of the export licence has not impacted the operational readiness of the Malaysian Armed Forces, as the RMN still possesses assets and weapons systems necessary to defend Malaysia's maritime sovereignty. The ministry also mentioned that the RMN is currently evaluating missile systems as potential replacements for the NSM system, ensuring the LCS delivery schedule remains unaffected.