DAP
wants the defence minister to explain why the cost of the six naval
patrol vessels has ballooned from the budgeted RM6 billion in February
to RM9 billion.
It’s national publicity secretary Tony Pua also asked why Malaysia needed six of such vessels when the US only has two.
“On February 5 this year, Defence Minister Zahid Hamidi announced that the government has approved RM6 billion for the Royal Malaysian Navy to acquire six second generation patrol vessels to be built by Boustead Naval Shipyards.
“In defending the RM6 billion deal in parliament, the minister had claimed that these patrol vessels were no ordinary ships but were advanced warships known as ‘littoral combatant ships’ (LCS).
“While the price of the ships was not ‘final’ in February, it has come as a shock when Boustead announced on Bursa Malaysia that the contract which was just signed last week is now valued at RM9 billion or 50 percent higher that what was approved earlier this year by the government,” said Pua in a statement today.
He added that the previous lot of vessels supplied by Boustead, previously known as PSC Naval Dockyards, was already problematic for being 26.2 percent above the original contract price of RM5.35 billion.
“The ships were also delivered only after a two year delay and hundreds of defects,” he said.
Pua, who is also PJ Utara MP, slammed the Defence Ministry for its dismal track record in terms of transparency and accountability.
He noted how the 2006 Auditor-General’s Report faulted the ministry, then under Defence Minister Najib Razak, for dubious award of contracts, failure of technical and financial management, “illegitimate” contract price increases, overpayment, unjustifiable waivers and “a complete failure of ministry oversight”.
“Such a track record does not give Malaysians any amount of confidence that history will not repeat itself,” said Pua.
He said the ministry’s “highly opaque” expenditure, and Malaysia’s "medium to low" Transparency International ranking, warranted a Parliamentary Oversight Committee “to review and approve defence expenditure as practiced in all developed countries”.
The MP said the lack of transparency and accountability in defence spending has led to “massive leakages and over-spending”.
“These leakages must be plugged to ensure that the country doesn't become bankrupt by 2019 as speculated by Minister in Prime Minister's Department, Idris Jala,”
It’s national publicity secretary Tony Pua also asked why Malaysia needed six of such vessels when the US only has two.“On February 5 this year, Defence Minister Zahid Hamidi announced that the government has approved RM6 billion for the Royal Malaysian Navy to acquire six second generation patrol vessels to be built by Boustead Naval Shipyards.
“In defending the RM6 billion deal in parliament, the minister had claimed that these patrol vessels were no ordinary ships but were advanced warships known as ‘littoral combatant ships’ (LCS).
“While the price of the ships was not ‘final’ in February, it has come as a shock when Boustead announced on Bursa Malaysia that the contract which was just signed last week is now valued at RM9 billion or 50 percent higher that what was approved earlier this year by the government,” said Pua in a statement today.
He added that the previous lot of vessels supplied by Boustead, previously known as PSC Naval Dockyards, was already problematic for being 26.2 percent above the original contract price of RM5.35 billion.
“The ships were also delivered only after a two year delay and hundreds of defects,” he said.
‘Opaque defence procurement’
Pua, who is also PJ Utara MP, slammed the Defence Ministry for its dismal track record in terms of transparency and accountability.
He noted how the 2006 Auditor-General’s Report faulted the ministry, then under Defence Minister Najib Razak, for dubious award of contracts, failure of technical and financial management, “illegitimate” contract price increases, overpayment, unjustifiable waivers and “a complete failure of ministry oversight”.
“Such a track record does not give Malaysians any amount of confidence that history will not repeat itself,” said Pua.He said the ministry’s “highly opaque” expenditure, and Malaysia’s "medium to low" Transparency International ranking, warranted a Parliamentary Oversight Committee “to review and approve defence expenditure as practiced in all developed countries”.
The MP said the lack of transparency and accountability in defence spending has led to “massive leakages and over-spending”.
“These leakages must be plugged to ensure that the country doesn't become bankrupt by 2019 as speculated by Minister in Prime Minister's Department, Idris Jala,”
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