Kit Siang: Brokers in chopper deal?

updated 5.30pm The Eurocopter deal may have been postponed indefinitely, but this has not stopped opposition stalwart Lim Kit Siang from continuing to press for information on the intended purchase.

At a press conference in the Parliament lobby today, Lim said postponing the purchase does not exempt the government from coming clean on many unanswered questions.

He called on the parliamentary Public Accounts Committee (PAC), which has started an inquiry, to “investigate whether there were any middlemen in the procurement of the (RM1.7 billion Eurocopter) aircraft, and if they received a commission”.

Lim alleged that brokers for the RM3.2 billion purchase of Russian Sukhoi jets and the RM3.4 billion purchase of the French Scorpen submarines received more than RM370 million and RM540 million respectively. The Defence Ministry has denied any irregularities.

The planned Eurocopter purchase is to replace the aging fleet of Nuri helicopters, but this has been dogged by allegations relating to the price and tender process.

While RM1.1 and RM2.3 billion have previously been quoted as the price tag, premier and Defence Minister Abdullah Ahmad Badawi yesterday clarified that the cost was RM1.7 billion, when he announced the suspension of the deal until the economy improves.

Lim, describing the decision as “the fastest shotgun suspension of a mega-defence deal” by the government, also demanded when the letter of intent had been issued.

He pointed out key “discrepancies” in information provided to date.

Defence Ministry secretary-general Abu Bakar Abdullah said Eurocopter had offered an ‘off-set package’ worth RM250 million, said Lim.

Abdullah, in saying that the government had not asked for the investment by Eurocopter to offset the purchase, quoted a higher sum of RM350 million.

Noted Lim: “This RM350 million is a new figure. All along, what has ben reported by the press is an ‘offset package’ offer by Eurocopter amounting to RM250 million. So I don’t know whether the prime minister was wrongly advised on this matter.”

He said Abdullah should further explain why the specifications for the Cougar EC 725s preferred by the government warrant a much higher price tag than that of the Supercougars purchased y Brazil.

'Close Proximity' To Decision

Lim then turned on PAC chairperson Azmi Khalid, demanding his withdrawal from investigations into the Eurocopter deal.

This is because Azmi (right) was natural resources and environment minister at the time when the cabinet decided that the Nuri helicopters should be replaced.

“Nobody will believe that he (Azmi) will be able to go all out to probe this deal [...] He was part of the decision-making process. This is close proximity, political khalwat,” said Lim.

“Not only must justice be done, but justice must be seen to be done. We should allow the deputy PAC chairperson (DAP’s Kepong MP) Dr Tan Seng Giaw to take over the entire investigation.”

Other than looking into specific questions surrounding the Eurocopter deal, Lim said PAC should “investigate the entire Ministry of Defence procurement process”.

He also said the PAC should look into the reasons behind the disastrous history in the performance of Nuri helicopters.

Since the first crash of April 25, 1969 which killed four armed forces personnel, there have been 14 other crashes involving 19 deaths and costing RM86.9 million in losses, he noted.

“I think the PAC should widen its inquiry into the history of Nuri crashes over the last 40 years to find out the reason for the high rate of fatalities here compared to other countries,” he added.

“Whether it’s because of mechanical fault, helicopter fault, or human failure or error, I think that should be an important part of the PAC investigations.”

Azmi's Respons

When met by reporters, Azmi disclosed that PAC has been told that if the Eurocopter purchase is deferred for more than 12 months, the price may change.

“Even if there’s deferment, if it goes beyond 12 months, the price doesn’t hold. That’s what we were told today,” he said.

He also said that “up until now, the technicalities from what we saw have been quite professionally done”, but declined further comment on the issue.

Denying that the PAC had been pressured by any quarters to conduct the probe, Azmi said the committee had decided on the inquiry even before cabinet was said to have requested the committee to do so.

The inquiry is not the only issue the PAC was looking into, Azmi said, citing Maybank's acquisition of a major Indonesian bank, and the RM11 billion broadband project as other matters to be investigated.

“We were there already. The PAC already made a decision. There’s no pressure from anyone,” he said.

Asked about the view that he should withdraw from the Eurocopter inquiry, Azmi said it was merely Lim's opinion.