RM350M COPTER DEAL UNDER PROBE
Package secured under suspicious circumstances, say sources
ACONTROVERSIAL procurement contract for “non-existent” light attack helicopters for the army, initially estimated to be worth RM300 million, is now believed to be in the region of more than RM350 million.
Defence industry sources believe that the procurement package, secured via direct negotiations
four years ago, was handled under “suspicious circumstances”.
One source told the New Straits Times that many details in the procurement package were “very hazy” and dubious in nature.
“We believe there were a lot of hidden expenses and financial irregularities. A lot more is expected to be known as investigators dig deeper into the case.”
A news portal had previously reported that six McDonnell Douglas MD530G light scout attack helicopters had been ordered for RM300 million, during the previous Barisan Nasional administration.
The deal was allegedly secured during the Langkawi International Maritime and Aerospace (LIMA) exhibition in 2015.
However, it was alleged that the army never took delivery of the helicopters. The news report said a contract for the helicopters was signed in November 2016, with delivery supposed to be made in two batches by last year.
It also claimed that a local agent had already been paid 35 per cent of the contract value, amounting to some RM113 million.
In an immediate response, the Defence Ministry said it had initiated an internal investigation into the procurement package.
Defence Minister Mohamad Sabu told New Straits Times that a high-level team of investigators were carrying out due diligence on the issue.
“The team is now carrying out a detailed investigation to ascertain if there was foul play and if proper procurement procedures were conformed with.
“We expect the findings to be forwarded to other agencies like the police and Malaysian Anti-Corruption Commission for further action,” he said, declining further comment.
NST has since learnt that Mohamad has briefed Prime Minister Tun Dr Mahathir Mohamad on the developments.
This marks the second scandal to hit the Defence Ministry’s previous leadership.
Earlier this month, Mohamad had unveiled a land-swap controversy involving the ministry.
Investigators had found that there were losses in excess of RM500 million in 16 land swap projects involving 1,286ha of the ministry’s land, worth RM4.756 billion and involved development costs of RM4.886 billion.
The 16 projects were on a design-and-build basis where the cost would be borne by the private sector.
Mohamad said many discrepancies were found, including the sale of land at lower prices, while other land swap projects were given to unqualified developers.
MACC recently said it would be summoning former defence ministers Datuk Seri Hishammuddin Hussein as well as Datuk Seri Ahmad Zahid Hamidi to have their statements recorded.