KUCHING: There is no impropriety in the Sarawak government-linked Hornbill Skyways' lease of an executive jet for use by VVIPs in the state, the legislative assembly was told on Wednesday (Oct 21).
Deputy Premier Datuk Douglas Uggah Embas, responding to claims by Chong Chieng Jen (DAP-Padungan) in his budget debate on Oct 14, said the appointment of Cempaka Helicopter Corporation Sdn Bhd was made in accordance with Hornbill Skyways' "established procurement, governance and due diligence processes".
Uggah said Hornbill chose the Subang-based Cempaka as the lessor of the Dassault Falcon 8X due to its extensive experience in handling such aircraft.
He added that Cempaka in turn is an associated company of Airod, an aerospace company with extensive experience in aircraft maintenance, repair and overhaul, airport handling and hangar services.
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Uggah said importantly, Airod also has experience in handling and supporting VVIP aircraft, including those operated for the Federal Government, and provides aviation support services to major airlines and the Royal Malaysian Air Force (RMAF).
Chong, the Sarawak DAP chairman, described the lease agreement for the aircraft as "a bit strange" during his debate.
He claimed that 50% of the US$71.77mil lease was paid even before the agreement was signed.
He claimed the remaining 50% is to be paid through 60 monthly instalments of US$598,000.
Chong also said it was assumed that Hornbill would gain possession and ownership of the plane at the end of the lease term, but that was not the case.
"At the end of the five-year term, the Falcon 8X plane remains the ownership of Cempaka Helicopter Corporation Sdn Bhd," he said.
Chong’s failure to substantiate his claims prompted state Transport Minister Datuk Seri Lee Kim Shin to file a motion to suspend him from the rest of the current sitting.
