Mindef lodges MACC report over copter buy

  • Nation
  • Friday, 14 Jun 2019

An Afghan Air Force MD-530F helicopter during a media demonstration on April 9, 2015, at a training range outside of Kabul, Afghanistan. – US Air Force photo by Staff Sgt Perry Aston/Released

PUTRAJAYA: The Defence Ministry has lodged a report with the Malaysian Anti-Corruption Commission (MACC) over the 2015 purchase of six helicopters worth more than RM300 million, which have yet to be delivered to the Malaysian Armed Forces.

A ministry representative filed the report yesterday.

According to a source, the McDonnell Douglas MD530G lightweight combat helicopters were supposed to be delivered in two stages – July 2017 and December 2018.The source said the terms of the purchase agreement did not safeguard the interests of the government, which included clauses such as “the contract is valid for two years, or, until the local company appointed as the agent successfully delivers the helicopters”.

The source said the approval for the purchase of the military assets in November 2015 was also not done according to procedures.

“The contract was done via direct negotiation with the agency, while many terms of the contract were unfavourable to the government, for example, the contract was approved without any military specifications, a mandatory requirement in the purchase of military assets,” the source said.

He said McDonnell Douglas had also cancelled the local company’s contract as its agent in Malaysia by the time the helicopter purchase agreement was signed.

The source added the government had already paid RM112.65 million, which was 35% of the total cost, to the company. — Bernama

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