The government takes necessary steps to resolve compensation claims after cancelling the Naval Strike Missile system contract with Norway’s Kongsberg Defence
KUALA LUMPUR: The government is taking all necessary measures to resolve compensation claims arising from the cancellation of a contract to procure the Naval Strike Missile (NSM) system from Norway’s Kongsberg Defence & Aerospace AS (KDA).
Defence Minister Datuk Seri Mohamed Khaled Nordin said the Defence Ministry and the Foreign Ministry had formally notified the Norwegian government of Malaysia’s position and intended course of action.
He said the move was aimed at ensuring Norway could facilitate and mediate any negotiations or subsequent actions involving the defence contractor.
“We are committed to resolving this matter, which is why we issued the necessary notices from the outset.
“I believe the Foreign Ministry has written to the Norwegian government to request that it play a facilitating and mediating role between the Defence Ministry and the company, so that the company can settle the compensation claim.
He said this to reporters after the launch of the National Defence Strategic Plan and Defence Capability Blueprint 2026-2030 here today, which was also attended by Chief of Defence Force General Tan Sri Malek Razak Sulaiman.
Yesterday, the Public Accounts Committee (PAC) said it had received a special briefing from the Defence Ministry on the issue.
The PAC subsequently urged the government to strengthen mitigation and diplomatic efforts to secure a fair resolution while safeguarding the country’s fiscal sovereignty.
