Cronyism, inexperience
holding up defence
projects, say experts
Maritime affairs analyst Salawati Mat Basir says the delays could be avoided if companies handling defence projects were competent.
Maritime affairs expert Salawati Mat Basir of Universiti Kebangsaan Malaysia said problems could have been avoided if the companies awarded the projects were competent and followed delivery schedules.
“Contracts awarded five to 10 years ago are now revealing their flaws. Cronyism could have been a factor because much money was wasted without any accountability,” she told FMT.
Salawati questioned the government’s willingness to pursue legal action against companies which fail to deliver on government procurement contracts, suggesting that such moves could potentially expose corruption within the government itself.
“If the government sues the companies involved for the delays, are they willing to be naked in court (by providing evidence). If they can, then we will see a show,” she said.
Last week, the government cancelled a contract for offshore patrol vessels, while the navy’s littoral combat ship project is long overdue, and an army deal for Black Hawk helicopters has been scrapped.
Mizan Aslam, a security and defence expert with the National Defence University, said financially stable companies should be hired to manage defence contracts.
Such companies could ensure timely payments to employees and suppliers, even if government reimbursements were delayed. Mizan also said cronyism must be eliminated to prevent unqualified companies from securing contracts.
Mizan suggested that the navy could consider leasing its vessels, as it shifts responsibility to contractors, thus ensuring accountability.
“For example, if Malaysia leased 10 LCS vessels and one broke down the contractor would be required to replace it within 24 hours or provide another vessel as compensation,” he said.
“If we own 10 LCS and two break down, it will take time to call for tenders to repair them. We don’t have the local experts to do this,” he said.
The LCS project came under scrutiny in 2022 when the parliamentary watchdog the Public Accounts Committee found that none of the six ships ordered under a RM9 billion contract were delivered despite Putrajaya having paid more than RM6 billion.
The navy should have received five of the ships by August 2022. The first vessel will now only be delivered and fully tested in August 2026. The cost of the project has also now been revised to more than RM11 billion, with only five ships set to be built.
On Thursday, home minister Saifuddin Nasution Ismail said the Cabinet has decided to terminate a contract for three offshore patrol vessels for the coast guard, after only one ship was handed over to the Malaysian Maritime Enforcement Agency in January last year, three years behind schedule.
Saifuddin said the government spent over RM600 million and injected another RM152.6 million just to finish the construction of a single vessel.
Similarly, a deal for four Black Hawk helicopters was scrapped last November due to delivery delays.
Malaysia urgently needs to put a stop to the practice of using middlemen for Defence contracts - New procurement as well as maintenance contracts.
ReplyDeleteIt's a recipe for corruption, cronyism, incompetence and simply unnecessary costs.