Monday, November 21, 2016

Profligacy in arms purchase

MM Online - Fighter jet service tech centre not satisfactory, federal audit finds

KUALA LUMPUR, Nov 21 — The construction of a RM73 million service technical centre for the care of Malaysia’s Sukhoi SU-30MKM fighter jets at the Gong Badak, Terengganu airbase has been less than satisfactory, according to the latest findings in the Auditor-General’s 2015 Report.

Released today, the second series of the federal audit report highlighted that the biggest setback to the project was the due to the choice of contractor, Syarikat Pembenaan Setia Jaya Sdn Bhd, appointed in March 10, 2014 for the Defence Ministry project.

A formal contract was signed on July 4, 2014 for the project to be carried out and backdated to March 24 that same year. It was to be completed by September 20, 2015.

However, Pembenaan Setia Jaya was found to be an inexperienced and financially unsound company.

“During the first 10 months, a sluggish construction progress had resulted in the takeover by a nominated sub-contractor on 15th January 2015,” the report said, without naming the replacement.

Usual story - handing out contracts to cronies, and worse, incompetent cronies at that. It was the same with a local naval boat contract in Penang in 1998.

In December 2011, FMT tell us:

The original contractor chosen to build Malaysia’s first generation naval vessels was PSC-Naval Dockyard. It was controlled by Amin Shah Omar Shah and his brothers.

Amin Shah, 53, was reportedly a high-profile tycoon known for his close ties to former Finance Minister Daim Zainuddin. This was during the era of former prime minister Tun Dr Mahathir Mohamad.

Under the 1990s privatization programme advocated by Mahathir, Amin Shah was among the few bumiputera entrepreneurs who were able to secure government concessions and contracts. And one of these key contracts was the Naval Dockyard in Lumut.

In 1995, the government privatised the Naval Dockyard to the then PSC Industries Bhd (PSCI), for RM300 million. Amin Shah had a substantial stake in this and the dockyard was renamed PSC-Naval Dockyard Sdn Bhd.

In 1998, PSC-Naval Dockyard was awarded a mammoth RM24 billion contract to build 27 offshore patrol vessels for the Royal Malaysian Navy.

By mid 2006, only two of the 27 offshore vessels (worth RM24 million) were delivered. But both failed to pass the pre-delivery trials.

There were 298 recorded complaints about the two boats, which were also found to have 100 and 383 uncompleted items aboard them respectively.

The original RM5.35 billion contract ballooned to RM6.75 billion by January 2007.

In my earlier post (cum letter to Malaysiakini) Who have we sold our country’s defence to? I showed a plethora of armaments our armed forces have - guess why?

It's not just the failure of this and other contracts but the severe jeopardising of our defence capability. I hope the company that recently secured the Chinese LMS is at least a qualified shilp-builder.

By the by, do you know why we bought four (4) of the Airbus A400 in 2005, when the RMAF have been using the proven and reliable American (Lockheed) C130H which type is used by the air forces of Australia, NZ, Indon, Thailand, Sing, Japan, South Korea, etc.

Ask the then Finance Minister, wakakaka.

And when we bought the European military transport at RM750 million a piece, it still hadn't flown, wakakaka again.


  1. Modern military equipment are systems, not standalone mechanical weapons. With such a mish-mash of sources of equipment, training, maintenance and spare parts management have been a nightmare. Not only that, a number of the systems purchased have been found to be non-performing, underperforming and unreliable.
    The Offshore Patrol Vessels OPVs which kept breaking down, cannot reach design speed; the Armoured Combat Vehicles ACV with unreliable engines, difficulty to source spare parts; a hodgepodge of lorry brands...a maintenance nightmare....

    There is a common thread to this Tower of Babel of Malaysia's military hardware purchases.

    Hint....who was the longest serving Defence Minister in Malaysian history ?

    No doubt plenty of You Help Me, I Help You deal-making during his days there, now vastly broadened since he became Malaysian Official 1.

    No doubt your letter to Mkini was intentioned to deflect criticism and sanitise, white-wash Malaysian Official 1's decision making process.

    Very much a Najib-partisan blog.

    1. glad you brought up the OPV - guess who gave the RM24 Billion contract to Amin Shah, wakakaka

  2. Bersih 5.0 is over.
    It was peaceful. Massive, gigantic, crowd...all races. The Malay turnout was huge...without needing PAS.
    PAS members came "in their personal capacity". Church members came "in their personal capacity".

    Sadly Maria Chin , among others, has been arrested, placed in solitary confinement, under a law Najib created to "fight terrorists".

    Maria Chin is a Terrorist ??. Plueeez......don't be such a fool...

    1. she has been a "confused" Muslim, probably more deadlier wakakaka

    2. And u a selectively minded wordsmith, acting "confused" whenever the situation suits u!

      Wakakakaka, deadly?

      Don't know. But definitely trying hard to defuse the way of his idol.

    3. Ktemoc is a bigot against those who oppose his beloved Najib...