Malaysia’s former navy chief, Ahmad Ramli Mohd Nor, was granted a discharge not amounting to an acquittal (DNAA) on Wednesday (March 12) in relation to the controversial littoral combat ship (LCS) scandal. The decision was made by the Kuala Lumpur Sessions Court after assessing his medical condition, which was deemed unfit for trial.
Judge Suzana Hussin stated that the ruling was based on a report from Kuala Lumpur Hospital, which assessed Ramli’s health and found that he was unfit to stand trial. The prosecution and defense had presented their arguments before the court reached its decision.
“After considering submissions from both parties and the Kuala Lumpur Hospital’s medical report on the accused’s medical capacity, the court finds that he is unfit for trial,” said Judge Suzana, as quoted by Free Malaysia Today (FMT).
The ruling means that while the charges against Ramli remain, he will not face trial unless new circumstances emerge that allow for the case to be reopened. The court also ordered that his bail money be refunded.
Ramli, 80, served as the commander of the Royal Malaysian Navy from 1996 to 1998 and later became the managing director of Boustead Naval Shipyard Sdn Bhd (BNS), the company at the center of the LCS controversy.
The LCS scandal revolves around a RM9.14 billion (US$2.06 billion) contract awarded in 2011 to Boustead Naval Shipyard for the construction of six combat ships for the Malaysian navy. The contract officially took effect in October 2013. However, despite the government having paid RM6.08 billion—about two-thirds of the total cost—not a single ship was delivered by the expected deadline of August 2022.
The scandal, one of Malaysia’s largest defense procurement controversies, raised serious questions about mismanagement, corruption, and financial misappropriation. Investigations revealed discrepancies in payments and delays in construction, prompting widespread public outrage and multiple legal actions.
In October 2023, Parliament’s Public Accounts Committee (PAC) disclosed in a declassified report that the number of LCS had been reduced from six to five. It also projected that the first ship would only be delivered by 2026, with the final vessel arriving by 2029—nearly a decade behind schedule.
Ramli was charged in August 2022 with three counts of criminal breach of trust (CBT) related to unauthorized payments made while he was managing director of Boustead Naval Shipyard. The charges alleged that he approved payments totaling RM21.08 million to three Singapore-based companies without the approval of the company’s board of directors.
The specific allegations included:
A payment of RM13.5 million to Setaria Holding Limited between July 26, 2010, and March 25, 2011.
A payment of RM1.4 million to JSD Corporation Pte Ltd between April 19, 2011, and May 4, 2011.
A payment of RM6.2 million to Sousmarin Armada Ltd between October 28, 2010, and November 22, 2010.
Ramli denied all charges and contested the case. His defense team argued that he was incapable of standing trial due to his deteriorating health.
In July 2023, Ramli’s daughter, Rinnie Nor Ahmad Ramli, submitted an affidavit stating that her father had been diagnosed with a progressive neurodegenerative disorder, which medical professionals described as similar to moderate mixed dementia.
Following this claim, the High Court referred the case back to the Sessions Court for further evaluation. Judge Suzana subsequently instructed Ramli to undergo a psychiatric evaluation at Kuala Lumpur Hospital. The latest medical report confirmed that his condition rendered him unfit to participate in legal proceedings.
On Wednesday, deputy public prosecutor Mahadi Abdul Jumaat informed the court that the Attorney General’s Chambers had rejected a representation letter from Ramli’s legal team, dated January 10, seeking a full acquittal. However, his defense counsel, Yusof Zainal Abiden, argued that given Ramli’s health, a discharge not amounting to an acquittal was the most appropriate outcome.
The court ultimately ruled in favor of the defense, citing medical grounds.
A discharge not amounting to an acquittal means that while Ramli is no longer required to stand trial at this time, the charges against him are not dismissed outright. The prosecution retains the right to revive the case if his health condition improves or if new evidence surfaces.
This ruling has sparked mixed reactions from the public and political observers. Critics argue that it raises concerns about accountability in major financial scandals, particularly in cases involving high-ranking officials. Others, however, acknowledge the court’s reliance on medical evaluations and the principle that individuals unfit for trial should not be prosecuted.
On Tuesday, Malaysia’s Defense Minister Mohamed Khaled Nordin stated that progress on the LCS construction had reached 73 percent. He announced that the first ship is now expected to be delivered in August 2026—four years later than the original deadline.
Despite the delays, the government has maintained that the project remains crucial for national defense. However, public confidence in the procurement process has been significantly shaken due to the corruption allegations and mismanagement surrounding the deal.
The LCS scandal is just one of several high-profile cases in Malaysia involving alleged corruption and financial mismanagement in defense procurement. Other cases, such as the Scorpene submarine deal in the early 2000s, have also cast a shadow over military acquisitions in the country.
Successive governments have vowed to increase transparency in defense contracts, yet major scandals continue to surface. The LCS case, in particular, has underscored the need for stronger oversight and reforms in how large-scale military contracts are awarded and executed.
The decision to grant Ahmad Ramli a discharge not amounting to an acquittal reflects both legal and medical considerations. While his legal battle may be over for now, the broader issue of accountability in the LCS scandal remains unresolved.
With billions already spent and no ships delivered, the Malaysian public continues to demand answers. The government’s ability to complete the LCS project and ensure future defense procurements are free from corruption will be key to restoring confidence in the system.
For now, the case serves as another reminder of the deep-rooted challenges in Malaysia’s defense sector and the ongoing struggle to balance legal, financial, and national security interests.
