Philosophy Politics Economics |
- So It's 6 Littoral Combat Ships, Or Not?
- 6 Second Generation Patrol Vessels: RM6 billion or RM9 billion?
- Pakatan Rakyat MPs to meet Zahid
| So It's 6 Littoral Combat Ships, Or Not? Posted: 21 Jan 2012 04:52 PM PST  However after our clarification meeting between Pakatan Rakyat Members of Parliament - Saifuddin Nasution, Dzulkefli Ahmad and myself with the Minister of Defence, Dato' Seri Zahid Hamidi and his officials, we have confirmed that we are not acquiring Littoral Combat Ships. The Government has been justifying the cost of acquisition of the 6 ships by comparing against the United States LCS programme which cost between RM1.5 billion to RM2.5 billion per ship to claim that we are buying on the cheap at only RM1.5 billion per ship. The LCS is a specific ship built by the United States (US) Navy and no other countries. The US current has only 2 LCS in service with orders for additional ships still under construction. According to Naval-Technology.com, the LCS is "a fast, highly manoeuverable, networked surface combat ship, which is a specialised variant of the family of US future surface combat ships... Both [ships] achieve sprint speeds of over 40knots and long-range transit distances of over 3,500 miles." The Wikipedia entry notes that the LCS are able to "add the capabilities of a small assault transport with a flight deck and hangar large enough to base two SH-60 Seahawk helicopters, the capability to recover and launch small boats from a stern ramp, and enough cargo volume and payload to deliver a small assault force with armoured fighting vehicles to a roll-on/roll-off port facility." The reputable Defense Industry Daily also confirmed the LCS are "115 – 127 meters in length and 2,800 – 3,100 tons of displacement" and are differentiated from typical frigates by "their shallow water design and employment." However, the Ministry of Defence has confirmed during our dialogue that the top speed for our SGPVs is only 28 knots and not 40-45 knots of the standard LCS. In addition, our ships will be shorter at 105 meters and does not have the long-range transit reach of 3,500 miles. Earlier announcements by Mindef have also confirmed that the ships will have a 2,500 tons of displacement, carry only an Eurocopter 725 each and does not have the capability to launch and recover small boats. In fact the announcement by Mindef contractor Boustead Naval Shipyards on Bursa Malaysia last month and our meeting confirmed that we will be acquiring "Gowind Class Corvettes" from scandal-tainted French shipbuilder DCNS. It will certainly be a stretch of any military experts' imagination to equate our purchase of these SPGV Corvettes to the state of the art LCS. We would like to once again thank Mindef for holding the dialogue with us 2 days ago for this information could not have been confirmed otherwise. We would now like to call upon Mindef to "call a spade a spade" and stop the attempt to disguise our acquisition with fancy names to justify their substantial cost. The Gowind-class corvettes are not ships to be belittled and are powerful in their own ways which may serve the needs oe Malaysian Navy, but they are not by means the equivalent of LCS as trumpeted by the Minister and Government.  |
| 6 Second Generation Patrol Vessels: RM6 billion or RM9 billion? Posted: 21 Jan 2012 02:51 AM PST The Pakatan Rakyat Member of Parliaments – Dr Dzulkefly Ahmad, Saifuddin Nasution and myself would like to thank the Ministry of Defence for making arrangements to provide clarifications to us over the recent procurement controversies yesterday. One of the key issues which required urgent clarification was the disparity between the originally stated RM6 billion to acquire 6 SGPVs, first highlighted in February 2011 which was subsequently increased to RM9 billion in December 2011. Below is a chronology of events and statements made:
At the meeting yesterday, the Secretary-General of Defence Ministry, Dato' Seri Ismail Ahmad "clarified" the apparent increase in the cost:
Malaysians can now make their own judgement as to whether the explanation given by the Defence Ministry is acceptable or even credible. I had asked during the meeting that if the actual purchase price or original budget was to be RM9 billion, then why did the Defence Minister announce on 5th February 2011 that it was RM6 billion to acquire 6 ships? I further added, if it was indeed RM9 billion and not RM6 billion all this while, why was it that it took more than 9 months for the "correct" RM9 billion figure to be exposed via the Boustead announcement? No further clarification was given by the Defence Ministry or the Minister besides insisting that it was all along a RM9 billion acquisition. The above controversy provides one of the clearest instances why it is imperative for the Parliamentary Oversight Committee on Defence Expenditure, modelled after the United States House Oversight Subcommittee on National Security, Homeland Defense and Foreign Operations which looks after defence policies as well as the US Defense Budget Appropriation Committees which review and approve detailed defence expenditure. The setting up of such a committee with access to all the necessary and relevant documents will ensure that no one will be left with any doubt over whether it was RM9 billion all along or whether there was a massive increase in price from RM6 billion.  |
| Pakatan Rakyat MPs to meet Zahid Posted: 20 Jan 2012 02:56 AM PST Pakatan Rakyat Member of Parliaments, Saifuddin Nasution, Dr Dzulkefli Ahmad and myself will meet with Dato' Seri Zahid Hamidi tomorrow 19th January 20112 (Thursday) at 3 pm at the Ministry of Defence after receiving his invitation to discuss the recent controversies with regards to defence procurement. Among the issues which we will raise with the Minister is the contract signed by the Ministry of Defence with Boustead Naval Shipyards "to design, construct, equip, install, commission, integrate, test and trials, and deliver six Littoral Combatant Ships (Frigate Class)" for the amount of RM9 billion last month. The RM9 billion contract was signed despite the Minister of Defence having told the Parliament twice in March last year that the ceiling price set for the acquisition of these ships was set at RM6 billion. This represents a huge increase of RM3 billion or 50% of the original budget. Malaysians are even more concerned when Boustead announced that the ships will be built by scandal-ridden French warships manufacturer, DCNS. While the ship-building history and capabilities of DCNS are not in doubt – DCNS has been found guilty of bribing government officials in Taiwan and has been fined by the Courts €630 million (approximately RM2.5 billion). The Taiwanese government has continued its litigation against DCNS by filing another NT$ 3.0 billion (RM310 million) in additional compensation from DCNS, above and beyond the sum above, for prohibited commissions and kickbacks at the International Court of Arbitration. Malaysians are of course well aware of the €115 million (~RM500 million) paid to Perimekar Sdn Bhd for "coordination and support services" in the Malaysia's purchase of 2 Scorpene submarines from DCNS which cost €1.34 billion (~RM6.5 billion). Perimekar was owned by the Prime Minister and the then Defence Minister Dato' Seri Najib Razak's close associate, Abdul Razak Baginda. It was also a newly set up company with no prior experience in providing defence support and coordination services. The Ministry of Defence must also provide clarity over the RM7.55 billion purchase of 257 armoured personnel carriers at RM29.4 million each. It has been publicised widely that Deftech Sdn Bhd, a subsidiary of DRB-Hicom Bhd owned by Tan Sri Syed Mokhtar Al Bukhary which was awarded the contract, has purchased the "base system" from Turkish defence company, FNSS Defence Systems for approximately US$559 million (~RM1.7 billion). The Minister must provide transparency over the above procurement, especially since it was conducted without any open tender. The Government must provide details of equipment and services which makes the difference between the acquisition cost of RM7.55 billion relative to the "base system" of only RM1.7 billion. Most importantly, given the size, specialisation and sensitivity of defence procurement, we would like to repeat our call for the Malaysian government to set up the Parliamentary Oversight Committee on Defence Procurement modelled after the United States House Oversight Subcommittee on National Security, Homeland Defense and Foreign Operations which looks after defence policies as well as the US Defense Budget Appropriation Committees which review and approve detailed defence expenditure. The set up of the Parliamentary Oversight Committee on Defence Procurement will lead to greater accountability and transparency to ensure that the rakyat's wealth will not be frittered away, especially in the light of the warning by Datuk Idris Jala that Malaysia might be bankrupt by 2019 if Government expenditure is not curtailed.  |
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