by Zairil Khir Johari
The Malaysian Insider
February 10, 2011
FEB 10 — Our government recently announced that it has decided to set aside RM6 billion for the purchase of six offshore patrol vessels (OPVs) for the Royal Malaysian Navy. These OPVs are to be produced by Boustead Naval Shipyard, Malaysia’s only naval shipyard company.
This comes up to roughly RM1 billion for each boat with all its trimmings: guns, radars, missiles and what have you. It is a princely sum to be sure, but security is without doubt an important national concern. This fact should not be underestimated. However, it also does not mean that we can discard transparency and due diligence, two characteristics that are rarely associated with the arms industry.
I would like to raise some questions about this project, due in no small part to the chequered history of defence deals concluded by our government in recent times. Firstly, let us talk about need. From what I gather, these OPVs should more appropriately be called Second Generation Patrol Vessels, or SGPVs. The name is also a misnomer for it belies the fact that they are corvette-type warships rather than “patrol boats.”
Put in this context, it would appear that the price of the SGPVs is pretty much in the region proposed. However, this gives us no reason to understand why they are necessary in the first place. Ostensibly, our country’s peacetime maritime threats are usually manifested as illegal fishing (recent reports estimate an unconfirmed loss of RM1 billion annually), piracy and theft of natural resources such as oil and gas, and, of course, the pervasive attempts by illegal immigrants to find their way onto our shores.
If these are indeed the purported threats, then it sounds to me like we need more patrolling rather than warships, unless there is an imminent threat of war with our neighbouring countries that we are unaware of.
Still, I must qualify my stand. In making the above assertion, I am speaking not as a defence analyst but instead from the point of view of a foreign policy neoliberal (though far from Wilsonian). It is my suggestion, therefore, that in this era of social, cultural and economic globalisation and interdependence, an all-out war, especially one pitting us against our neighbours, would simply be quite unlikely.
Political reasons alone no longer shape international relations, especially in this day and age. Social, economic and even domestic political ramifications would in effect prevent the advent of conventional warfare.
Secondly, the turnkey vendor for the project, Boustead Naval Shipyards, is being awarded the project through direct negotiation. Even if the argument is made for the case of our local defence industry, I believe the Malaysian public would be greatly reassured if they knew the government had at least held an international tender and considered various options before deciding to award it to a local company.
Lest we forget, Boustead Naval Shipyards is the restructured and rebranded Penang Shipping Company Industries, a company which had to be bailed out half a decade ago after its failure to deliver on a shipment of OPVs. While there is no reason to believe that Boustead is likely to repeat its predecessor’s failures, I would like to assert the necessity for greater public scrutiny, given what has happened in the past.
Finally, the main point of my argument is the need for democratic governance and oversight on defence procurement. Government apologists suggest that defence matters are too complex for the layman, and go so far as to suggest that the matter is beyond even Parliament’s comprehension.
That, I am sorry to say, is the same kind of patronising excuse used by dictators to justify authoritarian rule.
A parliamentary select committee to oversee defence procurements will not consist of laymen but selected MPs. If there are selected members of the House who are deemed competent enough to fill the various posts in the Cabinet, and indeed also the role of Minister of Defence (or should this post now be held by an un-elected General?) then it makes no sense at all to say that such matters are beyond the purview of the august House. To suggest otherwise would be an ignominious affront to the very notion of our statehood.
The essence of my concern is the matter of democratic principle. When a substantial amount of state funds are used, there needs to be transparency and accountability. Malaysians want to know whether we really do need these boats, whether other options have been considered, and whether due process has been adhered to in formulating a decision.
Discourse on the issue should therefore be framed around these arguments. To debate the minor points would be, to paraphrase an old expression, missing the ocean for the ships.
Zairil shows his naivete in his article above. Without contracts there can be no slush funds, so UMNO needs to generate contracts – whether needed or not – to placate the UMNOputras.
Aside from the question of whether the patrol boats are needed or not, especially at a time when prices are going up and subsidies are being dismantled, the RM 6 billion would be better used for assistance for the poor. However, we all understand that the prudent use of RM 6 billion does not generate the same benefits for UMNO as the contract for patrol boats would.
Zahid Hamidi has to be the dumbest defence minister we have – but then you don’t really need brains to be in that job. He went on record as saying that the government must spend RM 2 billion of the RM 6 billion on subcontracts to “approved” subcontractors who have been promised the subcontracts on this deal.
Like I said on several occasions, these UMNOputras will steal until there is nothing left to steal.
What better ideas do you think Najib can come out to raise billions for UMNO B kitty bank for the 13th GE?
It is always defense ..and concerning ways and means to defend our country..the so call racists patriots are all being fooled.
Enough details are given and published in Malaysiakini….the usual overpriced products…big and small…by these terrible incorrigible corrupted crooks.
They must have billions to buy voters.
It is the same old methods in different forms..and getting worst and worst under Najib’s premiership.
It shows how desperate he wants to win the 13th GE.
Why dont those idiots just allocate say 700-800m to finish up plaza rakyat. Well at least get the basement (carpark) and the podium block (shopping floor) ready. The hotel tower block and office/residential block can wait for another time. It is an eye-sore now on ground zero and it is a real mess when observed from up in the sky (in google earth).
I can’t see the rationale for the government embarking on profligate spending in projects which the nation does not need urgently. Wouldn’t it be better to emulate countries around the world in cutting down spending to prepare for global economic adversity?
Even the UK is cutting its budget drastically. They are retiring an aircraft carrier and even their most versatile aeroplane-the Harrier Jump-jet.
Maybe a photo can help more expert readers work out a reasonable budget for the type of ship we are getting? This is my 10-minute attempt:
http://malaysiawatch4.blogspot.com/2011/02/malaysiakini-and-how-to-spend.html
Another portion of illicit money could be accounted from the dealing.Why don’t they just set a small price to buy bolehland and sell it off to opposition when their time is out.
Times have long past when these thieves take one or two million. Now all they are interested in is a billion or two billion. Now we are talking.
You ask around about a company called Plenitude. It’s controlled by a wife of Daim’s. It has 3000 acres of land under development in Tebrau. Now how did she end up having the land ? We are not talking about 10 acres or even 100 acres.
Why spend billions to on defense against external threat when the real threat is from within. Very soon Malaysia will be swallowed not by foreign enemies but UNMOB/BN thieves. Malaysians need to wake-up NOW!!!
Well, one of the best defences one can give the nation from the hostile enemy is to make the country bankrupt! No one will want a country which has no money.So this is the brilliant idea from BN; so we shall remain very safe from the whole world! how about it?
Those 6billion ringgit boats got no propellers. Just like the sub which cannot dive and jet planes without engines.
just wait for the news in which another 6 billion is needed to save the companies.
Word from reliable sources is that Boustead now wants over RM7 billion for the 6 ships. Commissions are also subject to inflationary adjustments I suppose.
These debates about whether the country really needs all these patrol boats are futile. Chances are these boats will never be sea worthy enough assuming they get completed at all. After they have finished siphoning up the 6 billions into UMNO putra and cronies account Boustead will conveniently become insolvent and the players start another company for more lucrative billion dollar projects to cream. We have a government more interested in helping themselves to the national coffer than governing. What do you expect. But then who voted them in- the people themselves right. So why complain?
Godfather,don’t worry and be restless.Even without reliable sources,most if not all is not obviously well except understood.Typical bolehland ma.When certain elites thinking about making $$$,everything will multiple in numbers by magic wand or muscle-flexing to multiply the size of an organ by viagra to cause formal very dear price or the later the very ‘Ngang’ brother john.Then only can hari hari eat and bonk.
Correction #12
Godfather,don’t worry and be restless.Even without reliable sources,most if not all is not obviously well except reluctantly understood as norm.Typical bolehland ma.When certain elites thinking abo..
You cannot take money out directly from Government coffers to distribute it to cronies. It would be too blatant. So you have to do it the indirect way, that is by awarding contracts to them, whether such contracts are necessary or otherwise and at inflated prices. At the town where I live, re-surfaced roads can break up again within several weeks. A drain could be constructed one day and replaced several months later with a bigger drain. A traffic light could be installed at a certain location and later abandoned because the location was not suitable. So what if such mistakes (or irregularities) are mentioned in the AG’s annual report? How many people have been penalized over such ‘mistakes’? Coming back to the 6 patrol vessels costing RM1 billion each, I think they are too expensive. China sold 6 F-22P frigates (2250 ton full load) including several anti-submarine warfare helicopters and other weaponry to Pakistan recently for a total cost of US750 million.
That’s the problem here isnt it…Malaysians…unlike the Egyptians or even the Tunisians….are all talk…and worse still more talk…..
Do I have to be Thai to look for a red shirt here…
What kind of sick joke is this?
Use Google and you can find the website of defense companies. Or even at Wikipedia to see how much boats of that class cost.
The price of a modern (2009) armed offshore patrol boat is only about RM300 million. It can go as low as RM150 million (without large armaments).
So why are spending RM6 billion for 6 boats? We should at least get 14. Unless of course we are really buying something else.
The price of the 6 boats is not the issue, the issue is loyalty. If it costs more to have them built in the country, then so loyalty sake so be it. After all the money move around in the country until it follows the trail out like the 888 billion ringgit sitting outside. The Defense Minister would say if the government acquired it from outside, money goes straight out. Of course the Scorpene Submarines were a different issue. That was needed to issue the service contract to the person who no longer lives in this country. Further the person was not known to have better knowledge about military equipment than any relevant specialist in the Defense Department even in Malaysia. Yet the Commission, oops, the service contract had to be issued. That contract was worth 500 million ringgit. Of course the Defense Minister then was the PM now. How can MACC question the PM?