The Prime Minister-cum-Defence Minister, Datuk Seri Abdullah Ahmad Badawi announced yesterday that the defence procurement of 12 Cougar EC725 Eurocopter helicopters had been put on hold until better economic times – making history of the shortest-lived multi-billion ringgit defence deal between the issue of Letter of Intent (LOI) and its cancellation.
He has created more queries about the Eurocopter deal now put on hold, which must be answered either by Abdullah in the Defence Ministry reply in the budget debate in Parliament beginning today as well as the subject of the Public Accounts Committee inquiry into the Eurocopter deal, including:
1. Abdullah said that the Eurocopter deal is worth RM1.67 billion and not RM2.3 billion. This figure is also at variance with the price quoted by the Defence Ministry secretary-general Datuk Abu Bakar Abdullah who said last week that the tender price of the Eurocopter helicopters was RM1.l billion. How did the RM1.1 billion Eurocopter deal balloon to RM1.67 billion even before the issue of LOI?
2. Abdullah contradicted Abu Bakar as the latter had said that Eurocopter bid was selected in preference over the other six tender bids because “the company had a complete tender offer that obtained the highest marks based on technical evaluation, an offset package while also being at a reasonable price”.
Eurocopter had announced that its “offset package” if successful in the helicopter procurement is a RM250 million investment in Malaysia, including upgrading Eurocopter Malaysia’s maintenance, repair and overhaul (MRO) capacity in its Subang facility.
However, Abdullah denied the “offset package” was a factor, stating that the government did not ask for a RM350 million development package from Eurocopter for the Subang Aviation Park, adding: “Whatever they want to do, it is up to them. As far as I have been told, they offered it in the tender, we did not ask for it.”
The PAC should inquire into the “offset” dimension of the tender and report on the comparative “offset packages” of all the tender bids for the helicopter procurement.
3. Abdullah also justified the price as compared to the 50 Super Cougars procured by Brazil – at RM141 million per Cougar helicopter (at RM1.67 billion) for Malaysia as compared to RM84 million per Super Cougar helicopter by Brazil, claiming that the 12 Eurocopter units ordered by Malaysia are more expensive as they had different specifications.
He said: “Our requirements are more advanced. That obviously would come with a higher price,” adding that the Malaysian Eurocopters would be capable of search and rescue missions, combat operations and other duties.
PAC should investigate and report on this matter.
4. PAC should broaden its investigation into the history of Nuri helicopters crashes in the past 40 years, costing the government RM86.9 million in losses from 15 crashes, involving 70 officers and personnel apart from 19 deaths.
The first Nuri helicopter crash was on 25th April 1969 killing four RMAF personnel while the last fatal one was in Genting Sampah on 13th July 2007 claiming six lives. A RMAF inquiry concluded that there was no mechanical fault in the Genting Sampah crash.
The PAC should submit a report to Parliament to study all the reasons for all the Nuri helicopter crashes, whether as a result of human error or mechanical and helicopter faults.
3. Abdullah also justified the price as compared to the 50 Super Cougars procured by Brazil – at RM141 million per Cougar helicopter (at RM1.67 billion) for Malaysia as compared to RM84 million per Super Cougar helicopter by Brazil, claiming that the 12 Eurocopter units ordered by Malaysia are more expensive as they had different specifications.
From the above, it looks like the Super Cougar helicopter is much cheaper than the Cougar.
I may not be a helicopter expert but I think that anything with a super in its name should be more expensive.
So, in our case a not “super” plane is much more expensive than a “super”. Doesn’t make sense!
Instead of carrying on a guessing game with the public, why don’t the government reveal all the details completely to the public and let them know for themselves what the government is getting into; after all it’s their hard-earned money that is being spent!
How did the figure 2.3 BILLION RINGGIT OF OUR HARDEARNED MONEY come about then???!!!!
Pak Lah and Pak Jis credibility gone further down into sewerage tank!!!!
They forgot to include the commission.
There is no point in quarrelling with the Govt. To prevent abuse of public funds, Pakatan Rakyat must take over the Federal Govt. Only then would the “righteous” politicians be given the opportunity to prove how concern and caring they are to the Rakyat.
Lack of transparency on the part of the govt, misleading statements from the Defense Minister have created the unnecessary complications. Perhaps, with an ulterior motive of not wanting the public to know too much on this issue.
If the BN govt has nothing to hide come out clean and lay all the cards on the table!
It is the taxpayers’ money you are spending and it is about time this arrogant govt is made accountable.
A few more queries:
1) Are the helicopters REALLY needed? If they are, then it is irresponsible to cite “slowing economic growth” as the reason for its cancellation or postponement. Is the security of the country dependent on economic prospects and high oil prices?
2) If the helicopters are not really needed, but expensive toys for the army boys and for ferrying VIPs, then why are they ordered in the first place?
3) Is there a hefty penalty for cancellation or postponement?
Actually, it was RM 1.7 billion. The Sec-Gen, being short-sighted, thought that the “7” was a “1” so he jumped the gun and announced that the Eurocopter bid was 1.1 billion.
Uncle LIm,
Eurocopter is one thing we need to sort out. But for immediate release of pain for us commuters….. TAXI SERVICE SUCKS big time:
a) Taxi pilih2 and wont stop when hailed!
b) Taxi does not want to use meters almost all the time.
c) Taxi drivers are almost rude most of the time
The following is suggested;
a) The relevant minister in charge of taxi be held accountable.
b) REvamp the entire patronage system. Benchmark our taxi system to HOng KOng.
c) Definite 5 years time line where all taxi must surrender their license i.e. in 2013 (this provides enough time for them to settle all financing charges/make plans). New license issued only to individual at no cost. All taxi to change to new taxi format (comfortable taxi that can fit 5 persons). Enforcement is paramount – if they dont stop when hailed/or dont use meter, strip of their license and heavy penalty.
Please Uncle Lim… bring this to the attention in Parliament. I am so sick of our taxi system now.
When you try to cover a lie with another lie, then you will get contadictions. First 2.3 billion then 1.67 billion and the Minsitry’s sec-gen 1.1 billion.
Now the deal is off for the time being. Why ?
Because it is getting too hot to provide explanations for the differences and discrepancies. If no query, it would have breeze through and got approved..
When you try to cover a lie with another lie, then you will get contadictions. First 2.3 billion then 1.67 billion and the Minsitry’s sec-gen 1.1 billion.
Now the deal is off for the time being. Why ?
Because it is getting too hot to provide explanations for the differences and discrepancies. If no query, it would have breeze through and got approved..
answer: payment made in euro and ringgit keeps dropping
The fact that the helicopters are rather highly priced
Is enough to cause many eyebrows to be raised
This call for the matter to be thoroughly appraised
So that any dishonest dealing can be erased
Izrafeil no offence but stop blaming the taxi drivers, they are made suckers like us rakyat. Met couple of taxi drivers who lost their sanity probably due to plight of life which have long been ignored by the ruling coalition.
Just ask yourself few questions:- Who are the taxi kings and how much they rob from the taxi drivers? More than 12 hrs daily 6-7 days a day in order to subsidies the Kings and Queens and to make a live … understand they work more than 3-5 yrs just to pay off a taxi and on top of that have to fork out daily rate. That’s why they have to keep the taxi running.
Malaysia got the worst taxi service in the region. Do find out where is the root of all evil before blaming the poor taxi drivers.
I am happy with the taxis in Sibu. We have the best service, with meter, of course. I always tip the drivers
Taxi drivers in Sibu / Bintulu / Cameron etc are quietly enjoying life. Work 2 trips a day fetching same passanger to and fro from airport to work place is enough to call a day.
Why? No competition, no traffic jam, no meter, more importantly no taxi kings and queens.
Talking abt own experience.
Ok, out of topic.
Since the PAC hearings will be held, let them do their work to uncover any hanky-panky.
Also since the NURIs service is being extended by a few years the PAC should also look into the condition of the “old birds”. Don’t be surprised to find 3 or 4 being cannibalised to keep the rest flying.
http://malaysiawatch4.blogspot.com/2008/10/malaysiakini-and-latest-on-eurocopters.html
First you tell one lie.
Then you need to tell two lies to cover that one lie.
Next you have to tell 4 lies to cover that two lies and so it goes on from 2.3b to 1.7b to 1.1b
Bodowi, your explanation smells fishy. Don’t think we are bananas like you. Everyone knew you were fumbling when giving that nonsense explanation. You knew trouble would befall, so you scrapped off the deal, so that ACA and PAC will stop investigating.
ACA and PAC will say, ” if there is no deal, no point investigating. The alleged corruption has not taken place yet.”
Wow!!! what kind of capabilities sophistication the RMAF is looking for.
Search and rescue, combat operation and other utility roles. Ahmmm… sound great so justify the price hike?
PAC should also find out what make 12 as the number required, very funny as to what kind of strategic military exposure that the capability requirement study was based on if compared to Malaysia geographic location. Or is it a created requirement without proper evaluation just to meet some hidden agenda.Defense procurement should not just be taken for granted as it involves big money.
It is also in the interest of PAC to report to members of parliament on the status of the NURI as stated by YB Kit, the cost of maintainance and many other related issues of privatization and contractorisation and its impact on the overall aviation industry in Malaysia. How far we have progress? or is the gomen initiative only benefit only some people well connected?
PAC must proceed as this is not the only case but many other procurements may simply be created without looking at the real capability needs and at the end of the day money is wasted unnecessarily. Parliament select committee must be set up to make sure all defense procurement be properly justified in line with our National Defense Policy/Strategy-do we have it?!!!
The 12 Eurocopter units ordered by Malaysia are more expensive than those procured by Brazil because they have “Malaysia Boleh” labels on them. (The labels are made in HongKong)
Badawi woke up late as usual one morning and told the housemaid to water the plants at Sri Perdana.
“But, YAB, it’s raining outside” the housemaid pleaded.
“Don’t be stupid. We have plenty of umbrellas” was the reply from the Prime Minister of Bolehland.
Mr PM and DPM swapped portfolio of Finance and Defense Minister right after issuance of LOI of Eurocopter. Wats the deal, 50-50 ahhh.
Come on lah, want to makan dont lah makan under broad day light … even blind also can see some hanky-panky behind the scene. My 5 yr old son also said how come they are so d*** so straight one. Now blaming on world crisis, nonsense!
BIG SHAME to both Mr Soon-To-Be-Ex-PM and Mr Soon-To-Be-PM.
The discrepancies in the tender price of the Eurocopter helicopters
must be due to the lack of knowledge in simple Accounting and Mathematics. If it is, then this bunch of officers should go back to school to learn the basic fundamentals of the four basic rules of Mathematics!
damn obvious that the UMNO warlords are stealing the country’s wealth thru purchases,so phucklah is telling us that the rm84 million that purchased by brazil per heli was a plain one,my as well we buy from china,price per unit similar capacity,plain-one(unquote),may be only rm12 million,isnt it,damn fool warlords!
IT’S OFF!
i’m no expert in army choppers, but why don’t we hear american companies considered in the bidding process? certainly their products are competitive if not superior. perhaps the americans refuse to play hanky panky with umno scum lords?
Comon they rip me off my seats as PM’d and heres some few bill’s of compensation from my beloved DPM… Wacha all whining abt LA!!!
trublumsian:
The Americans have the Foreign Corrupt Practices Act which makes it a criminal offence for US companies to deal with foreign companies that are politically-connected. For years, companies like Boeing and GE have had problems in dealing with third world countries because most deals are somehow tied to the political party in power.
In the Eurocopter case, the vendor is a subsidiary of EADS, a listed company, and any allegation of corruption would cause headaches for this Franco-German parent. I have originally posted here that if there is no cooperation from the den of thieves (they would inevitably hide under the OSA), we can always start an action in the French courts to force EADS to reveal the tender process and the pricing.
Let me clarify that it is not a criminal offence for US companies to deal with politically-connected parties if there is no corruption involved, and US legislation requires written representation from the US companies in this regard.
Maybe someone has forgotten this:
The Bofors scandal was a major corruption scandal in India in the 1980s; the then Prime Minister Rajiv Gandhi and several others were accused of receiving kickbacks from Sweden’s Bofors for winning a bid to supply India’s 155 mm field howitzer. The scale of the corruption was far worse than any that India had seen before, and directly led to the defeat of Gandhi’s ruling Indian National Congress party in the November 1989 general elections.
You know. Those holes that rather strangely can neither be covered nor filled. Do what you want they will as surely as day follows night, re-appear. There are many such holes up and down the country. In fact they have become a common physical feature of our land.
And you know something else. More are appearing. And existing ones are growing in size. As if they are living creatures – growing and needing to be fed all the time. What the heck is happening? Aliens are upon our land if I may guess.
First, 1.1, then 1.67 and subsequently 2.3 – look at it grow – thats only one of the many recent holes that we can see. At the rate things are going, soon (in fact sooner and not later) we would have no sufficient solid ground on which our feet could stand.
Then we would have to step on each other – first, feet and later, toes. By the laws of natural progression or more appropriately degression, stepping on each other’s toes would be a luxury. Then like Alice we all would just fall right through. But unlike lucky Alice, we would not see Wonderland.
The good news is we have seen a fresh look as how parliament being conducted. We started to hear balance voices of simple basic question as “ why it happened or how it happened” at the parliament even from the ruling parties. On the other-hand, the bad news is the country needs caliber MP in putting the house in proper. While PKR was giving a chance to create a balance voice to ensure an efficient government, the check & balance role seems relied on a few specific voices. There is a need more new faces in playing the roles.
As rule of thumb, one will not allow disparity either in wealth giving the same conditions.
It is hard for one to have self control for not making politic a cash cow when the predecessor have set records for making good money from abuse the power entrusted without punishment. A new MP of any parties will tend to follow those past practices of self interest with exception.
The billion dollar question is when these chain of practices can be break off. There is a say “ not to put good money on bad money”. The close terminology here is one will continue to ensure his crony become his successor in protecting their interest or at least not to rock the boat. It is hard for one with the power entrusted not to use the power to his advantage in making quick money.
A number of government officers suppress people with ISA for voice out grievances and to certain extent even banned people from reporting the facts through the media. Why the government is afraid of disclose the facts? Is Malaysian in general to be blind-folded or incapable of making good collective judgment? Yes, only those who have strong mindset cannot make good decisions.
Though the solution for those grievances may not be available immediately, the government shall have study the facts as why it happened. If the government policy is to improve the poverty rate among the people, there must be a more transparent mechanism to ensure government spending is based on scientific facts and acceptable to public rather than purely rely on lopsided national policy.
Every body in the government is having a field days on the correct figures on the helicopters purchase.
Who is correct in his figures? No body is correct.
All sorts of figures are menetioned in the press by all sorts of officers and politicians to confuse every body and that is the job of PAC to tell our people.
“The PAC should submit a report to Parliament to study all the reasons for all the Nuri helicopter crashes, whether as a result of human error or mechanical and helicopter faults”.
I was told there was at least one crash which had a female passenger’s hand on the pilot’s joystick. What was that all about??
Godfather, thx for the insight. I am certain, though, there are gaps in enforceability of any american policies against working with dirty regimes. cheney’s haliburton stands out in that aspect, whereas companies like boeing and gm would be governed by long running enfolds between these stalwarts and the dept of defense, as well as self ethics that come with being epitome of american business. EADS would do better with looser constraints and the myriad of middlemen who thrive in proxying for regimes who have transparency issues.