It is encouraging to note the statements made by Defence Minister Datuk Seri Dr. Ahmad Zahid Hamidi relating to future arms purchase as reported in the Malay Mail dated October 13, 2009, under the bold headlines that reads ‘Arms purchase review on the cards’.
What strikes me are two significant statements, firstly quote “ We will make sure that the funds allocated to the Armed Forces are spent wisely and arms procurement and other contracts are delivered on time and within the budget” unquote, and secondly quote “As long as I am Defence Minister I will make sure that the Armed Forces will not be the victim of greedy people who only want to make quick buck” unquote.
My personal comment on the above statement (if it were to be adhered strictly) is that it is going to cause a ‘commotion’ and ‘uneasiness’ among the many agents/vendors/commission seekers/cronies/cohorts etc, etc, that have been doing a flourishing business with Mindef. I do not need to mention who they are because it is common knowledge, as they are frequently seen loitering along the corridors of Mindef, and are continuously at the behest of the top bosses (Armed Forces and civilian alike), with some even listed in the entourage of the bosses during their foreign visits.
Someone did say to me sometime ago that doing business with Mindef is like you going on a fishing spree, whereupon having found the ‘lubuk’, you are assured of a good catch. But in order to continue enjoying a good catch, you are expected to also feed the small fishes as well, that loiters around the ‘lubuk’.
I am also told that the small fishes are littered all over, beholden to their bosses, prowling like hawks waiting for a bite at anything that moves. That’s the way to do business with Mindef, and I have said enough in my earlier postings concerning the corrupt practices of some of the bosses, that I only hope to see one day, one handcuffed and dragged to prison.
I am glad that the Defence Minister has made his position known to all, and my only hope is that the tender system for a contact with Mindef is fair, transparent and void of cronyism and special favour. And most of all, that all bidding are through the open tender system, and not the direct negotiation that was so common in the past.
CRUSADE AGAINST CORRUPTION
Showing posts with label mindef. Show all posts
Showing posts with label mindef. Show all posts
Friday, October 16, 2009
Saturday, July 11, 2009
THE SPURT OF CONSTRUCTION PROJECTS AROUND MINDEF
I was driving up along Jalan Padang Tembak this morning on my way to Kg. Datuk Keramat, and I decided to drive uphill along the road that leads to the Armed Forces Staff College (AFSC). Back in 1985, and once again in 1993, this was the road that I frequently used on my way out to town, since I lived in one of the military quarters just below AFSC. My main reason for the diversion was to drive pass AFSC where I once served as a Directing Staff, and also to look at the military quarters that I had once stayed along Lorong Kubu.
I was pleasantly surprised to see the development projects that is going on around the area, which will definitely change the landscape of the surrounding area once the projects are completed. The entire area where the Armed Forces Officers Mess once stood has all disappeared, including the bachelor officers apartments. The area is being fenced up, and construction of a new Armed Forces Officers Mess is fast appearing. I am told that the Officers Mess is modeled along a four star hotel with all its modern amenities befitting of a posh hotel, including a grand ballroom that can take in one thousand people in a single sitting. I am amazed at the description of the Officers Mess, and I only hope that I am still around to bare witness to the facility when is it completed. I am proud that the government has given the officers of the Armed Forces what it truly deserve.
The Mindef Stadium as it was known before, is also undergoing major reconstruction. I observed a new covered grandstand is being built and including some other sporting facilities. This is indeed a worthy project, and I am quite sure the facilities will be fully utilised when it is ready.
During the period that I was in Mindef, the two playing fields and the other sporting facilities are most popular among the officers and soldiers, especially on Wednesday's and Friday's; both days being compulsory games days. In most instances, there would be more by-standers than participants. This is because there are not enough sporting facilities to cater for the large number of participants. I am not quite sure what is left of the two tennis courts that had once been my favourite sport.
The Mindef Mosque too is undergoing major renovation. From what I observed, the mosque has doubled its original size, and this hopefully will cater for the growing Mindef population, as well as the civilians around the neighbouring Kg. Datuk Keramat area, especially during the obligatory Friday prayers. I do hope that the development of the mosque takes into account the need for a much larger car park constructed within the mosque area itself.
I commend the people that had mooted the projects that is sure to bring benefit to the Mindef population. But what concerns me most is the quality of work that the contractors will provide at the completion of the projects. We have seen too many shoddy work, and I blame this on poor supervision and utter neglect by the authorities concern. Let us hope that incidence like the collapse of the roof of the grandstand of the new Trengganu main stadium recently does not occur to any one of the projects mentioned above.
CRUSADE AGAINST CORRUPTION
I was pleasantly surprised to see the development projects that is going on around the area, which will definitely change the landscape of the surrounding area once the projects are completed. The entire area where the Armed Forces Officers Mess once stood has all disappeared, including the bachelor officers apartments. The area is being fenced up, and construction of a new Armed Forces Officers Mess is fast appearing. I am told that the Officers Mess is modeled along a four star hotel with all its modern amenities befitting of a posh hotel, including a grand ballroom that can take in one thousand people in a single sitting. I am amazed at the description of the Officers Mess, and I only hope that I am still around to bare witness to the facility when is it completed. I am proud that the government has given the officers of the Armed Forces what it truly deserve.
The Mindef Stadium as it was known before, is also undergoing major reconstruction. I observed a new covered grandstand is being built and including some other sporting facilities. This is indeed a worthy project, and I am quite sure the facilities will be fully utilised when it is ready.
During the period that I was in Mindef, the two playing fields and the other sporting facilities are most popular among the officers and soldiers, especially on Wednesday's and Friday's; both days being compulsory games days. In most instances, there would be more by-standers than participants. This is because there are not enough sporting facilities to cater for the large number of participants. I am not quite sure what is left of the two tennis courts that had once been my favourite sport.
The Mindef Mosque too is undergoing major renovation. From what I observed, the mosque has doubled its original size, and this hopefully will cater for the growing Mindef population, as well as the civilians around the neighbouring Kg. Datuk Keramat area, especially during the obligatory Friday prayers. I do hope that the development of the mosque takes into account the need for a much larger car park constructed within the mosque area itself.
I commend the people that had mooted the projects that is sure to bring benefit to the Mindef population. But what concerns me most is the quality of work that the contractors will provide at the completion of the projects. We have seen too many shoddy work, and I blame this on poor supervision and utter neglect by the authorities concern. Let us hope that incidence like the collapse of the roof of the grandstand of the new Trengganu main stadium recently does not occur to any one of the projects mentioned above.
CRUSADE AGAINST CORRUPTION
Tuesday, April 7, 2009
IS THIS THE BEGINNING OF A MUCH LARGER MACC INVESTIGATION INTO THE DEFENCE MINISTRY?
NST Online dated April 7, 2009 reports that MACC had on Friday, April 3, 2009 arrested a 54 year old CEO of a company for allegedly subletting a Defence Ministry contract for RM 1.3 million. The contract for the supply of defence equipment was worth RM 41.5 million.
From the report, one can presume that the company that was originally awarded the contract is either a bogus company, or a company with close link to officials involved in awarding the contract. One can also presume that the contract was awarded through direct negotiations.
There must have been similar cases like this in the past that had gone un-noticed. This is the easiest way for one to get exceedingly rich quickly, and it cannot be done without the connivance of unscrupulous insiders in the ministry.
MACC has to come down hard on those involved, and one ought not to be surprised that the trail may lead to some senior officials in the ministry. It is unlikely that junior officers are involved because of the high contract value, and it will not be surprising too that this may just be the tip of a larger MACC investigations on the ministry.
CRUSADE AGAINST CORRUPTION
Posted at 4 pm on April 7, 2009
From the report, one can presume that the company that was originally awarded the contract is either a bogus company, or a company with close link to officials involved in awarding the contract. One can also presume that the contract was awarded through direct negotiations.
There must have been similar cases like this in the past that had gone un-noticed. This is the easiest way for one to get exceedingly rich quickly, and it cannot be done without the connivance of unscrupulous insiders in the ministry.
MACC has to come down hard on those involved, and one ought not to be surprised that the trail may lead to some senior officials in the ministry. It is unlikely that junior officers are involved because of the high contract value, and it will not be surprising too that this may just be the tip of a larger MACC investigations on the ministry.
CRUSADE AGAINST CORRUPTION
Posted at 4 pm on April 7, 2009
Tuesday, March 10, 2009
US PRESIDENT OBAMA REVIEWS DEFENCE CONTRACTS
In an effort to cut unnecessary and wasteful defence spending, US President Barack Obama has instructed that a review be made with regards to the award of defence contracts, that had during the Bush administration resulted in a two fold increase in defence spending to sustain the unjust war in Iraq and Afghanistan.
What is so glaringly unpopular was that the Bush administration had been awarding major contracts to companies like Halliburton through selective bidding costing billions in taxpayers money. Halliburton, an oil and gas company was once associated with the former US Vice President Dick Cheney, and it was obvious that presidential patronage had favoured the company for contracts in Iraq and Afghanistan.
President Obama’s move to curb further deterioration in wasteful defence spending, and to cease selective bidding is seen as a popular move that will pleased defence contractors and the US taxpayers. It was reported that more than 140 investigations are currently on-going to prosecute those involved in ‘murky and highly doubtful contracts’ that are either unfulfilled or partially fulfilled.
President Obama was open in his criticism towards the Bush administration by referring it to ‘the era of irresponsibility’ that saw defence spending increased two fold, in excess of RM1.86 trillion since 2001.
The Malaysian government, and in particular the Defence Ministry have somewhat been emulating the US in its defence spending.
Isn’t selective bidding a preferred method of awarding defence contracts by the Defence Ministry? Isn’t Target Resources Sdn Bhd the preferred company to be offered contracts by the ministry that had now amounted to almost a billion? Isn’t Sydney Franklin the preferred foreigner to act as the agent for capital purchases for the ministry that is reported to have also amounted in excess of one billion? Where lies the transparency, integrity, honestly and good governance that our civil service is so proud off in dealing with contracts?
It is high time that our Prime Minister takes a serious note from what has been said by President Obama, and to make a similar statement as a matter of urgency, before the rot in the Defence Ministry (other ministries included) becomes unbearable.
CRUSADE AGAINST CORRUPTION
Posted at 2 pm on March 9, 2009
What is so glaringly unpopular was that the Bush administration had been awarding major contracts to companies like Halliburton through selective bidding costing billions in taxpayers money. Halliburton, an oil and gas company was once associated with the former US Vice President Dick Cheney, and it was obvious that presidential patronage had favoured the company for contracts in Iraq and Afghanistan.
President Obama’s move to curb further deterioration in wasteful defence spending, and to cease selective bidding is seen as a popular move that will pleased defence contractors and the US taxpayers. It was reported that more than 140 investigations are currently on-going to prosecute those involved in ‘murky and highly doubtful contracts’ that are either unfulfilled or partially fulfilled.
President Obama was open in his criticism towards the Bush administration by referring it to ‘the era of irresponsibility’ that saw defence spending increased two fold, in excess of RM1.86 trillion since 2001.
The Malaysian government, and in particular the Defence Ministry have somewhat been emulating the US in its defence spending.
Isn’t selective bidding a preferred method of awarding defence contracts by the Defence Ministry? Isn’t Target Resources Sdn Bhd the preferred company to be offered contracts by the ministry that had now amounted to almost a billion? Isn’t Sydney Franklin the preferred foreigner to act as the agent for capital purchases for the ministry that is reported to have also amounted in excess of one billion? Where lies the transparency, integrity, honestly and good governance that our civil service is so proud off in dealing with contracts?
It is high time that our Prime Minister takes a serious note from what has been said by President Obama, and to make a similar statement as a matter of urgency, before the rot in the Defence Ministry (other ministries included) becomes unbearable.
CRUSADE AGAINST CORRUPTION
Posted at 2 pm on March 9, 2009
Sunday, March 8, 2009
DIRECT NEGOTIATION BEING BLATANTLY PRACTICED BY DEFENCE MINISTRY DESPITE PUBLIC RESENTMENT
Despite the issue being raised in parliament; despite resenting comments in the internet, the Defence Ministry is still proceeding to renegotiate the award of the submarine rescue services to a favoured company whose core business is infrastructure works, building and quarry activities.
From reliable sources, the company is believed to be Target Resources Sdn Bhd, and is reportedly owned by a Dato from Pahang. Upon further checking, the same company is believed to have been awarded several projets by the Defence Ministry that runs into millions, through direct negotiations. If one does not see this as being a blatant and hideous act of cronyism by the ministry's top official, what other better words can be used to described the aforesaid act.
Now, Target Resources Sdn Bhd is again being invited to renegotiate and propose to the Defence Ministry a new pricing from an initial quoted figure of RM 98.4 million per year for a period of 20 years. What a profitable deal this will be for the construction company, where even the blind, mute and deaf can become instant millionaire, if the deal were to go through, unnoticed to the concerned public and tax payers.
The company is said to have made a new proposal of RM 60 million per year to the Defence Ministry. For those in the submarine rescue service industry, they claim that this figure is still unrealistic, and has been inflated by almost 100%. A realistic figure would be RM 30 million per year or thereabout, and there is already a reasonable commission factored into the figure. How did Target Resources Sdn Bhd derive a figure of RM 98.4 million initially, and then later proposing a figure of RM 60 million demands full public explanation from both the ministry and the company.
Public perception of the Defence Ministry has never been good with regards to the award of contracts. Public resentment is cleverly being subdued from public knowledge. The powers-that-be has ignored totally the practice of transparency, fairness and honesty in the award of contracts, and by so doing, they have betrayed the trust that is beholden upon them as loyal, faithful and honest public servants. Whims and fancies rules the day, and the talk around the ministry is that 'the higher the cost, the better it is'.
To put this highly controversial deal in its correct perspective, it is incumbent upon the ministry's Secretary General to explain the rational of insisting that Target Resources Sdn Bhd be awarded the contract by direct negotiation, as well as to explain the basis of reasonable pricing to be accepted by the ministry. An explanation given by the Deputy Defence Minister or the Minister himself isn't enough.
To deliberately ignore competitive bidding, the Defence Ministry and in particular the Royal Malaysia Navy, will not be able to get the desired scope of services at the best price. And certainly, RM 60 million per year is certainly not the figure worth accepting at all.
CRUSADE AGAINST CORRUPTION
Posted at 8.00 am on Mar 8, 2009
From reliable sources, the company is believed to be Target Resources Sdn Bhd, and is reportedly owned by a Dato from Pahang. Upon further checking, the same company is believed to have been awarded several projets by the Defence Ministry that runs into millions, through direct negotiations. If one does not see this as being a blatant and hideous act of cronyism by the ministry's top official, what other better words can be used to described the aforesaid act.
Now, Target Resources Sdn Bhd is again being invited to renegotiate and propose to the Defence Ministry a new pricing from an initial quoted figure of RM 98.4 million per year for a period of 20 years. What a profitable deal this will be for the construction company, where even the blind, mute and deaf can become instant millionaire, if the deal were to go through, unnoticed to the concerned public and tax payers.
The company is said to have made a new proposal of RM 60 million per year to the Defence Ministry. For those in the submarine rescue service industry, they claim that this figure is still unrealistic, and has been inflated by almost 100%. A realistic figure would be RM 30 million per year or thereabout, and there is already a reasonable commission factored into the figure. How did Target Resources Sdn Bhd derive a figure of RM 98.4 million initially, and then later proposing a figure of RM 60 million demands full public explanation from both the ministry and the company.
Public perception of the Defence Ministry has never been good with regards to the award of contracts. Public resentment is cleverly being subdued from public knowledge. The powers-that-be has ignored totally the practice of transparency, fairness and honesty in the award of contracts, and by so doing, they have betrayed the trust that is beholden upon them as loyal, faithful and honest public servants. Whims and fancies rules the day, and the talk around the ministry is that 'the higher the cost, the better it is'.
To put this highly controversial deal in its correct perspective, it is incumbent upon the ministry's Secretary General to explain the rational of insisting that Target Resources Sdn Bhd be awarded the contract by direct negotiation, as well as to explain the basis of reasonable pricing to be accepted by the ministry. An explanation given by the Deputy Defence Minister or the Minister himself isn't enough.
To deliberately ignore competitive bidding, the Defence Ministry and in particular the Royal Malaysia Navy, will not be able to get the desired scope of services at the best price. And certainly, RM 60 million per year is certainly not the figure worth accepting at all.
CRUSADE AGAINST CORRUPTION
Posted at 8.00 am on Mar 8, 2009
Wednesday, March 4, 2009
CAN THE DEFENCE MINISTRY KEEP CONFIDENTIAL ITS DEFENCE PURCHASES?
I wish to refer to a Bernama report citing the Prime Minister’s remarks that direct negotiations for defence equipment contracts “were for those that involved security equipment or certain strategic projects which must be kept confidential such as the purchase of weaponry systems”.
The Prime Minister said this in a written reply in parliament recently in responding to a question from Tian Chua (PKR – Batu) who wanted to know what is the total value of purchases or projects carried out by the Defence Ministry from 2006 until last year.
Personally, I don’t believe the answer given by the Prime Minister is totally correct.
Malaysia being a net importer of defence equipments (strategic or otherwise) cannot possibly keep its purchases a secret from the original equipment manufacturer (OEM) or from any of its competitors. This is a well known fact, that the moment a planned purchase is known, manufacturers of similar equipment (through its authorized agents) will be knocking at the doors of the Defence Ministry to start proposing their product.
It is also a fact that authorized agents will even have in their possession the full specifications of the equipment almost immediately upon an intended purchase is made by the ministry. Under normal circumstances, the specification of the equipment will be prepared by specially designated military officers and held under restricted distribution. However, this does not really happen and the specification document will invariably be leaked out. How this occurs is anyone’s guess.
On the part of the international defence media, they too have their own means of acquiring ‘intelligence’ regarding any intended defence equipment purchases by a potential buyer. Even if there is no firm letter of intent issued to the OEM, a write-up in the defence media will already be published. One only need to refer to Jane’s defence magazine to read an entire write-up of the intended purchase. And on the local scene, the Asian Defence & Security magazine will also have something to write.
Then how do we ensure confidentiality in the purchase of certain defence equipment? This will be a question that only the Defence Ministry can answer.
And once again, I wish to reaffirm that the award of contracts through direct negotiation is undeniably a source of corruption.
CRUSADE AGAINST CORRUPTION
Posted at 5.00 pm on Mar 4, 2009
The Prime Minister said this in a written reply in parliament recently in responding to a question from Tian Chua (PKR – Batu) who wanted to know what is the total value of purchases or projects carried out by the Defence Ministry from 2006 until last year.
Personally, I don’t believe the answer given by the Prime Minister is totally correct.
Malaysia being a net importer of defence equipments (strategic or otherwise) cannot possibly keep its purchases a secret from the original equipment manufacturer (OEM) or from any of its competitors. This is a well known fact, that the moment a planned purchase is known, manufacturers of similar equipment (through its authorized agents) will be knocking at the doors of the Defence Ministry to start proposing their product.
It is also a fact that authorized agents will even have in their possession the full specifications of the equipment almost immediately upon an intended purchase is made by the ministry. Under normal circumstances, the specification of the equipment will be prepared by specially designated military officers and held under restricted distribution. However, this does not really happen and the specification document will invariably be leaked out. How this occurs is anyone’s guess.
On the part of the international defence media, they too have their own means of acquiring ‘intelligence’ regarding any intended defence equipment purchases by a potential buyer. Even if there is no firm letter of intent issued to the OEM, a write-up in the defence media will already be published. One only need to refer to Jane’s defence magazine to read an entire write-up of the intended purchase. And on the local scene, the Asian Defence & Security magazine will also have something to write.
Then how do we ensure confidentiality in the purchase of certain defence equipment? This will be a question that only the Defence Ministry can answer.
And once again, I wish to reaffirm that the award of contracts through direct negotiation is undeniably a source of corruption.
CRUSADE AGAINST CORRUPTION
Posted at 5.00 pm on Mar 4, 2009
WHO IS SYDNEY FRANKLIN?
Many maybe wondering who is Sydney Franklin. But for those in the Defence Ministry, that name has been in circulation around the corridors of the ministry for quite a while, and is a popular figure, especially among the top brasses in the ministry. He is full of generosity; readily making contributions for important golfing events organized for the top brasses. He takes pride to be in the inner circle, and he features regularly at weddings and functions hosted by the ‘who’s who’ of the ministry
Speculations are rife among defence equipment representatives, suppliers and contractors that Sydney Franklin, a British citizen is one of the favoured defence equipment ‘middlemen’ for the Defence Ministry. He is said to have been instrumental in securing several defence contracts through direct negotiations with the Defence Ministry over the last 5 years or so.
He operates an office from a penthouse located in a posh apartment at Jalan Pinang, Kuala Lumpur. His official business address is in London where he is a registered contractor for the UK Defence Ministry (www.franklin.co.uk).
The first known contract involving Sydney Franklin was for the supply of the Astros II Multiple Launcher Rocket System (MLRS) for the Army in 2002. The MLRS is a product of Avibras Industria Areospacial International Ltd of Brazil, where a total of 18 launchers were supplied to the Army at the costs of US 207,764,155.00 (RM 727,174,542.50 approximately). Sydney Franklin is said to have been the ‘middlemen’ for this contract, concluded between the Defence Ministry and the equipment manufacturer.
In a speech by the Chief of Army at a parade to mark the 76th Army Day celebration on 1st March 2009, it was announced that the Army will be receiving its second consignment of 18 MLRS launchers scheduled to arrive before the end of the year, to complete the second MLRS regiment. The cost quoted by the Chief of Army was RM 27 million (Star 2 March 2009) which is believed to be an error, as the figure is grossly different to the cost quoted in 2002 above. It was said that Sydney Franklin was once more a party to this contract, which was again offered through direct negotiations. And anymore purchase of this same equipment will be a waste of public fund.
What is unusual about the purchase of the MLRS (and questioned by many) is that the award for the maintenance of the entire system is believed to have been given to Sydney Franklin. This deal certainly sounds odd for a strategic purchase like this. Wouldn’t it be proper for the maintenance job be awarded to a Malaysian company; thus developing some local expertise in the maintenance of strategic weaponry? Little wonder that despite the millions spend on the purchase of assorted weapons over the last five decades, the country is yet to produce a simple weapon indigenously.
In 2007, the Army acquired and was supplied with the VERA-E passive surveillance radar; a product of the Czech Republic. A similar product was also acquired by the People’s Republic of China earlier at the costs of US54.7 million for 10 systems (JDW 28 April 2004). It will be interesting to know how much was paid by our Defence Ministry, which many says is many times more than what China had paid. Again, Sydney Franklin’s role in acquiring this contract sticks like a sore thumb.
The question that need to be asked urgently is how many more defence contracts will portray prominently Sydney Franklin’s role as its middlemen? He has no official business representation in Malaysia, nor does he own a registered company in Malaysia. But yet he is consistently involved in a direct negotiated defence contract with the Defence Ministry. How could this possibly happen right under the noses of our policy makers, is beyond anyone’s belief. Are they that dumb and stupid not to have noticed the fallacy in awarding strategic defence contracts involving a foreigner without the participation of a local representative? This is a question that only our political masters and the powers-that-be in the Defence Ministry (both civilian and military) could answer.
Recently, there was a talk about acquiring the Airborne Early Warning Aircraft (AEWAC) for the Armed Forces. Will Sydney Franklin again feature in this deal through the infamous direct negotiation?
CRUSADE AGAINST CORRUPTION
Posted at 10.00 am on Mar 4, 2009
Speculations are rife among defence equipment representatives, suppliers and contractors that Sydney Franklin, a British citizen is one of the favoured defence equipment ‘middlemen’ for the Defence Ministry. He is said to have been instrumental in securing several defence contracts through direct negotiations with the Defence Ministry over the last 5 years or so.
He operates an office from a penthouse located in a posh apartment at Jalan Pinang, Kuala Lumpur. His official business address is in London where he is a registered contractor for the UK Defence Ministry (www.franklin.co.uk).
The first known contract involving Sydney Franklin was for the supply of the Astros II Multiple Launcher Rocket System (MLRS) for the Army in 2002. The MLRS is a product of Avibras Industria Areospacial International Ltd of Brazil, where a total of 18 launchers were supplied to the Army at the costs of US 207,764,155.00 (RM 727,174,542.50 approximately). Sydney Franklin is said to have been the ‘middlemen’ for this contract, concluded between the Defence Ministry and the equipment manufacturer.
In a speech by the Chief of Army at a parade to mark the 76th Army Day celebration on 1st March 2009, it was announced that the Army will be receiving its second consignment of 18 MLRS launchers scheduled to arrive before the end of the year, to complete the second MLRS regiment. The cost quoted by the Chief of Army was RM 27 million (Star 2 March 2009) which is believed to be an error, as the figure is grossly different to the cost quoted in 2002 above. It was said that Sydney Franklin was once more a party to this contract, which was again offered through direct negotiations. And anymore purchase of this same equipment will be a waste of public fund.
What is unusual about the purchase of the MLRS (and questioned by many) is that the award for the maintenance of the entire system is believed to have been given to Sydney Franklin. This deal certainly sounds odd for a strategic purchase like this. Wouldn’t it be proper for the maintenance job be awarded to a Malaysian company; thus developing some local expertise in the maintenance of strategic weaponry? Little wonder that despite the millions spend on the purchase of assorted weapons over the last five decades, the country is yet to produce a simple weapon indigenously.
In 2007, the Army acquired and was supplied with the VERA-E passive surveillance radar; a product of the Czech Republic. A similar product was also acquired by the People’s Republic of China earlier at the costs of US54.7 million for 10 systems (JDW 28 April 2004). It will be interesting to know how much was paid by our Defence Ministry, which many says is many times more than what China had paid. Again, Sydney Franklin’s role in acquiring this contract sticks like a sore thumb.
The question that need to be asked urgently is how many more defence contracts will portray prominently Sydney Franklin’s role as its middlemen? He has no official business representation in Malaysia, nor does he own a registered company in Malaysia. But yet he is consistently involved in a direct negotiated defence contract with the Defence Ministry. How could this possibly happen right under the noses of our policy makers, is beyond anyone’s belief. Are they that dumb and stupid not to have noticed the fallacy in awarding strategic defence contracts involving a foreigner without the participation of a local representative? This is a question that only our political masters and the powers-that-be in the Defence Ministry (both civilian and military) could answer.
Recently, there was a talk about acquiring the Airborne Early Warning Aircraft (AEWAC) for the Armed Forces. Will Sydney Franklin again feature in this deal through the infamous direct negotiation?
CRUSADE AGAINST CORRUPTION
Posted at 10.00 am on Mar 4, 2009
Tuesday, March 3, 2009
DEFENCE MINISTRY RENEGOTIATING TERMS OF SUBMARINE RESCUE SERVICES
One ought to be puzzled at the statement made by Deputy Defence Minister Abu Seman in parliament Monday March 2nd, 2009 (Star, Tuesday March 3rd, 20009) regarding the award to a bumiputra company for the submarine rescue services for the Royal Malaysian Navy. He is reported to have said that the offer made by the company was RM 98.4 million per year for a period of 20 years which was disagreed by the ministry. Hence, a fresh offer has to be made by the company.
The deputy minister further said that, “the offer to the company was through direct negotiations as the navy wanted to gain full knowledge on the submarine rescue procedures and also to get the best terms for the services”.
The statements made by Abu Seman is littered with contradictions, and smells of nothing less than an attempt at inflating costs and awarding the contract to a favoured company. This has been the issue that most defence related companies has been arguing all along i.e. why direct negotiation, and worse still the award was made to a company whose core business is not defence related, but that of a construction company. This is where Abu Seman was shy in revealing.
Most in the defence industry will vouch that the Royal Malaysian Navy is about the best of the three services in terms of planning for its force development, as well as in making decisions for capital purchases and support services. This being so, the statement made by Abu Seman to justify the award through direct negotiations to a construction company is arguable.
The submarine rescue service is a highly specialized service, and the navies within the ASEAN region (notably Singapore and Indonesia) does not have a dedicated submarine rescue service within its organization. The service is being outsourced, and presently there are only two renowned submarine rescue service companies available in the world i.e. one is a US company and the other a UK company.
There is in Malaysia today representatives representing the two foreign submarine rescue service companies. The question asked is why were the representatives not called in to offer their bid. Knowing that the services required is so specialized, wouldn’t it be better for the navy to have more than one company bidding, thus allowing a thorough evaluation be made? Isn’t the open tender system the best in terms of getting good value for money?
Certainly the statement made by Abu Seman needs rethinking, and knowing our Royal Malaysian Navy, most would agree that the decision to award the job through direct negotiation is not the navy’s wishes, but that of someone else with pecuniary interest.
CRUSADE AGAINST CORRUPTION
Posted at 11.00 am on March 3, 2009
The deputy minister further said that, “the offer to the company was through direct negotiations as the navy wanted to gain full knowledge on the submarine rescue procedures and also to get the best terms for the services”.
The statements made by Abu Seman is littered with contradictions, and smells of nothing less than an attempt at inflating costs and awarding the contract to a favoured company. This has been the issue that most defence related companies has been arguing all along i.e. why direct negotiation, and worse still the award was made to a company whose core business is not defence related, but that of a construction company. This is where Abu Seman was shy in revealing.
Most in the defence industry will vouch that the Royal Malaysian Navy is about the best of the three services in terms of planning for its force development, as well as in making decisions for capital purchases and support services. This being so, the statement made by Abu Seman to justify the award through direct negotiations to a construction company is arguable.
The submarine rescue service is a highly specialized service, and the navies within the ASEAN region (notably Singapore and Indonesia) does not have a dedicated submarine rescue service within its organization. The service is being outsourced, and presently there are only two renowned submarine rescue service companies available in the world i.e. one is a US company and the other a UK company.
There is in Malaysia today representatives representing the two foreign submarine rescue service companies. The question asked is why were the representatives not called in to offer their bid. Knowing that the services required is so specialized, wouldn’t it be better for the navy to have more than one company bidding, thus allowing a thorough evaluation be made? Isn’t the open tender system the best in terms of getting good value for money?
Certainly the statement made by Abu Seman needs rethinking, and knowing our Royal Malaysian Navy, most would agree that the decision to award the job through direct negotiation is not the navy’s wishes, but that of someone else with pecuniary interest.
CRUSADE AGAINST CORRUPTION
Posted at 11.00 am on March 3, 2009
Tuesday, January 6, 2009
IS THERE ANOTHER SCAM IN THE DEFENCE MINISTRY?
Capt Zahar Hashim (Retired) who had caused a stir among UMNO circles and the government by exposing the now deferred purchase of the Eurocopter helicopters for the RMAF, and who was subsequently suspended from UMNO, is once again in the limelight. This time, he claims to have reliable information regarding the purchase of a submarine for the RMN, which was purportedly done through direct negotiations, and not through the open tender system.
I do not recall of any more new purchase being made by the RMN for additional submarines, but I do know that there is a dire need by the RMN to acquire submarine rescue services for its newly acquired submarines. The submarine rescue is deployed during times of emergency, to undertake life saving rescue operations of the crew of a troubled submarine.
The sea rescue of submarine crew is a highly specialized operations, undertaken by experts at underwater rescue using specialized equipments. For our RMN to have a dedicated submarine rescue unit may not be economically viable, because of the high costs of acquiring and maintaining such equipments. Hence most navies, with the exception of large navies, would outsource such services when the need arises. And I am told that there are not many companies in the world that provides submarine rescue services.
I suppose the issues likely to be raised by Zahar Hashim could be firstly, one that is related to the manner in which the contract was awarded and secondly, the cost of contract. If it was awarded through direct negotiation, then the issue of cost that is competitive to other bidders does not arise. Being direct negotiation, the award of contract can be subjected to abuse by the awarding party, and in this case by the Ministry of Defence high officials. I am also not surprise if the company that has been awarded the contract is owned by someone known and close to the ministry officials. One only need to check with the registrar of companies the know who’s who in the company.
Let us all wait and see what will come out of Zahar Hashim revelation and the people involved in this ‘scam’, if there is really one. And if there is one, this may yet be another test case for the newly formed MACC.
CRUSADE AGAINST CORRUPTION
Posted at 14.00 hrs on Jan 6, 2008
I do not recall of any more new purchase being made by the RMN for additional submarines, but I do know that there is a dire need by the RMN to acquire submarine rescue services for its newly acquired submarines. The submarine rescue is deployed during times of emergency, to undertake life saving rescue operations of the crew of a troubled submarine.
The sea rescue of submarine crew is a highly specialized operations, undertaken by experts at underwater rescue using specialized equipments. For our RMN to have a dedicated submarine rescue unit may not be economically viable, because of the high costs of acquiring and maintaining such equipments. Hence most navies, with the exception of large navies, would outsource such services when the need arises. And I am told that there are not many companies in the world that provides submarine rescue services.
I suppose the issues likely to be raised by Zahar Hashim could be firstly, one that is related to the manner in which the contract was awarded and secondly, the cost of contract. If it was awarded through direct negotiation, then the issue of cost that is competitive to other bidders does not arise. Being direct negotiation, the award of contract can be subjected to abuse by the awarding party, and in this case by the Ministry of Defence high officials. I am also not surprise if the company that has been awarded the contract is owned by someone known and close to the ministry officials. One only need to check with the registrar of companies the know who’s who in the company.
Let us all wait and see what will come out of Zahar Hashim revelation and the people involved in this ‘scam’, if there is really one. And if there is one, this may yet be another test case for the newly formed MACC.
CRUSADE AGAINST CORRUPTION
Posted at 14.00 hrs on Jan 6, 2008
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