KUALA LUMPUR, 17 Oct 2008: The Ministry of Defence today reiterated that the acquisition of the Eurocopter EC725 helicopter was in accordance with the set regulations and without the influence of any party.

The secretary-general of the ministry, Datuk Abu Bakar Abdullah, in a statement today said that the price offered by Eurocopter to replace the Nuri aircraft was through an international open tender which opened on 7 Nov 2007.

He said the decision to acquire the Eurocopter aircraft was based on the comprehensive bid made by the company, and after it scored the highest marks covering the technical assessment of the needs of the military. It also took into consideration the offer of a reasonable offset price.

"Eurocopter also offered a proven system and fulfilled the military specifications. The Royal Airforce of Malaysia (TUDM) is responsible for being up-to-date with the latest information on current helicopter technology developments in the market which fulfil the needs of military operations.

"The assessment also took into account the suitability of use and the operations climate in Malaysia as well as in the conflicted areas in the world. TUDM indeed has full and comprehensive knowledge of the latest helicopters available in the market," he said.

Abu Bakar said that after the open international tender was out, a briefing session was held on 6 Dec 2007, during the Langkawi International Marine and Aerospace exhibition where TUDM provided the explanation on the technical and operational aspects expected of the potential aircraft to be purchased.

The representative from the Defence Industry Division meanwhile explained the need for an offset package and said this was in line with a letter issued by the Defence Ministry on 4 Feb 2005 on the Policy and Guideline on the Countertrade/Offset Programme.

Among others, the programme stated that for any acquisition of defence equipment worth more than €10 million or more, there should be an offer for countertrade/offset.

The open international tender was closed on 12 Feb this year. On the same date the ministry's Committee for Opening and Scheduling of Tender (JMMT) opened all the offer documents received, witnessed by the participating companies' representatives.

Abu Bakar said a total of seven offers were received with the bidding pricing including delivery charges. The pricing offered by Eurocopter (Code tender: T521/07/A/006) was €233,345,390.

"These documents were further divided into three groups and assessed by the Technical Assessment Committee, Offset Evaluation Committee and Price Assessment Committee.

"The output of all the three committees was tabled at the Tender A Board Meeting on 22 July 2008 and subsequently its endorsement submitted to the Finance Ministry on 4 Aug 2008.

"On 3 Sept 2008, the Defence Ministry received the decision and approval from the Finance Ministry to choose Eurocopter's tender and the Ministry of Defence issued the Letter of Intention to Eurocopter on 15 Sept  2008," Abu Bakar said.

The government earlier through a cabinet meeting on 18 July 2007 had made the decision to acquire helicopters to replace the Nuri aircraft following wide complaints on the performance of the Nuri.

- Bernama

Comments (41)

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written by ROBERTNGTG, October 18, 2008 09:40:50

All rules were observed in acquiring helicopters, says ministry

SAY AGAIN, WHOSE RULES??? WHAT RULES??? JUST BECAUSE YOU SAY SO???
YEARS DOWN THE LINE THE PAC WILL REPORT THAT NO PROPER PROCEDURES
WERE adOPTED, BLAH, BLAH, BLAH AND THE ISSUE WILL BE SWEPT UNDER THE
CARPET AND SOME AMENO BLOKES WILL BECOME FILTHY RICH. YEP, RULES WERE
ALSO FOLLOWED IN THE SCORPENE/SUKHOI DEALS AND SOME BLOKES MadE RM 510M.
REAL EXPENSIVE TOYS INDEED.

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written by doggone, October 18, 2008 09:46:29

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written by said, October 18, 2008 09:57:55

Hundreds of millions of ringgit to Barisan leaders from arms deals BRIBERY.
Corruption money to Badawi, Najib and a few more from Barisan, in arms deals, submarine and Eurocopter deals is a certainty- to the tune of hundreds of millions of ringgit. But the deals details are kept quiet from rakyat, opposition parties and news media with the threat of ISA on them. Barisan is still bleeding rakyat from every race. What a motherfcuking Barisan govt Malaysia has, robbing the country!!!!! Corruption is the name of the game in every govt department following the leaders in Barisan. The sultans, governors and Agong cheer and clap to the obscene corruptions in front of them. The whole lot of you should also fcuk your sons, daughters, wives, brothers, sisters, mothers, fathers, mothers and dogs, in the arse, as you do to the traumatised and angry poor people of Malaysia.
Below is news from AFP News, Paris on 17.10.08 regarding corruption money (about 500 million ringgit) paid to Saudi Arabia govt leaders by BAE Systems, Britain from a huge arms deal.

--------PARIS (AFP) - The OECD slammed Britain for failing to tackle corporate bribery on Friday, following an inquiry launched after London blocked a probe into a huge arms deal between BAE Systems and Saudi Arabia.
According to an Organisation for Economic Cooperation and Development report, British law makes it "very difficult for prosecutors to bring an effective case against a company for alleged bribery offenses".
The body's anti-corruption experts are "disappointed and seriously concerned about the UK's continued failure to address deficiencies in its laws on bribery of foreign public officials and on corporate liability for foreign bribery."
Compiled after a probe by a 37-state OECD working group, the report complained that Britain has failed to successfully prosecute a single firm for bribery, despite ratifying the body's anti-bribery convention 10 years ago.
The body urged Britain to rapidly bring its legislation into line with its international obligations under the convention.
Britain's Serious Fraud Office had investigated claims that BAE Systems, one of the world's biggest arms makers, ran a 60-million-pound (75-million-euro, 110-million-dollar) slush fund for Saudi officials to attract contracts.
Police ditched the probe in 2006, however, before anyone was prosecuted, after the British government came under pressure from the Saudi government.
In July, the House of Lords, Britain's highest court, overturned a ruling that the Serious Fraud Office acted unlawfully by stopping the probe.-------

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written by krising1, October 18, 2008 09:59:26

'The government earlier through a cabinet meeting on 18 July 2007 had made the decision to acquire helicopters to replace the Nuri aircraft following wide complaints on the performance of the Nuri.' If this is the case, why ask does Pak Lah say that the secretary general has to investigate and then make this statement? Why did he not just say that this project has been approved by the cabinet? Even if approved by the cabinet, the allegation is one over priced purchase. That has not been answered!

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written by Sudahlah tu, October 18, 2008 09:59:43

Tuhan lebih mengetahui segala-galanya.

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written by Hello Keithy, October 18, 2008 10:04:53

That's why Badawi-Najib exchanged portfolio. Badawi wants to make sure the rules of calculation for commissions is done his way and without any hitch. These bas_tards are paving the way for themselves and not for the country. Malaysians should wake up and rid of these crooks who are raping the wealth of this country.

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written by lamakawan, October 18, 2008 10:06:12

"....all rules were observed.........". Yes all rules were observed, but by the inner circle of conspirators of the approved deal. Who cannot believe the deal was rigged? These sort of deals have been going on since BN governed the country and it is not spectacular at all to those in the know. It is to us outside, the general public, that is feeling uneasy of the vast amount spent unnecessarily to get the deal done when it could have been done more effectively, costwise, in getting it done. It has become a custom or a tradition to add on whatever that is required to grease the hands of the powers that be.

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written by MAMR, October 18, 2008 10:16:14

I propose any award EXCEEDINGS RM200 MILLIONS be justified and APPROVED by RAKYAT REPRESENTATIVES ie PARLIMEN. I propose TO CANCELL THE PRESENT LOI ( Letter of Intend ) and call for Retender. The award of the retender TO OBSERVE THE ABOVE PROCEDURE.The reasons are to AVOID of so many FLOPS and ACCUSATIONS of PREVIOUS awards of projects.

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written by SocratesI, October 18, 2008 10:32:23

According to Barisan Najis UMNOputra rules of course where Najis Rosak gets the lion's share with some of it trickling down (the crumbs not caught by Ros-p*k*-mah) to his aides and cronies.

How else can MINDEF explain why the price at which the copters were bought exceeded the same model of copters sold by Eurocopter to Brazil and in 2006/2007 as well ?? The prices should have come down, not up by more than RM1.4 billion !!!

Stop trying to fool the RAKYAT with your cronies in the Govt. trying to cover up for you, Najis Rosak ! We Know What Happened and What Is Happening !!

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written by SCM, October 18, 2008 10:32:41

"All rules were observed in acquiring helicopters, says ministry". Are these the same rules that were observed and applied for the purchase of the submarines? Are these the same rules that were observed and applied for the murder of Altantuya? C'mon, let the rakyat C4 themselves and let all documents relating to this purchase be examined by the opposition. If all rules were truly observed, there should be nothing to hide.

Hahahaha, I will bet my last ringgit that the ministry will not allow this. I'm sure Eurocopter has already received an sms from N*@#s saying that everything is under control.

We should investigate Eurocopter.

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written by arazak, October 18, 2008 10:35:50

EUROCOPTER – ACCORDING TO REGULATIONS, MY FOOT!!!

KUALA LUMPUR, 17 Oct 2008: The Ministry of Defence today reiterated that the acquisition of the Eurocopter EC725 helicopter was in accordance with the set regulations and without the influence of any party.

Brazil purchase of Eurocopter, 50 copters for RM4.14 billion = RM82.8 million per unit

Malaysia purchase of same Eurocopter, 12 copters for RM2.317 billion = RM193 million per unit.

Difference in price per unit = RM110.2 million per unit

Malaysia have overpaid the purchases of the copters by = RM110.2 million x 12 units = RM1,322.4 million, that is RM1.332 billion.
-----------------------------------------------------------------------

For this amount of money, RM1.3224 billion, Najis could have covered all bases, including maybe at the Ministry of Defence (Kementah).

Even worst, we were told that you people have not even done the physical inspection and test-drive the copters!

What is the pelican-chinned ACA Director doing?

Mind you. . ., that is our money, yes, the rakyaats' money, you goons at Ministry of Defence are talking about!

Do you know what is the meaning of “Duit Haram”?

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written by lynn, October 18, 2008 10:51:13

Since Malays form the majority,they have to be educated how corruption works, how much money has been lost, who the money went to, why is corruption unacceptable - the country is being bled dry by this govt & the only reason bn is still in power is because 50% of these voters think
(a) there is NO corruption & they sincerely believe so!
(b) there is corruption but it is perfectly alright because sodomy is worse (even though the charge is fraudulently made-up) (this point tells u how fcuk-up some people's brains are, which i suspect is due to their religious inclination - you know that "I am holier than you kind-of attitude")

Dr M ended his tenure as the longest serving PM because the Malays rejected him. So if patriotic Malaysians want to end corruption, we need a change of govt, and we need to educate the Malays in our midst abt what is going on in this country & to this day, there is no open accountability abt how the trillions made from oil & natural gas goes to, whose bank a/cs, or how they were spent.

Remember, ministers are merely government servants. Treat them as you wud yr employees.
Secondly, oil & natural gas found belongs to the rakyat. All the money belongs to the country, not a single sen belongs to the government.

People must be educated to absorb the marked difference here - I know of pensioners who are grateful to the govt for their measly pension - what these oldies fail to realise is, these monies they are getting, comes from taxes & so on - these monies belong to us, the rakyat. So stop being grateful to the govt. They are supposed to do their fcuking jobs!

In conclusion, education (the type one is getting) is the vital key to our problems. People need to be educated in the broad sense, they have to be advised too, not to read the local MSM which I feel, are sometimes lying in their reporting, and so, to learn, you need to grasp a strong command of at least one universal language. Those who read lies are worse off than those who do not read at all.

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written by sonofmalaysia, October 18, 2008 10:55:55

Hei Najis,

You should Have some decency, forget about the PM ship, to save 27 millions Malaysians the agony of shame. Because you stink to high heavens, if you become PM, no decent world leaders would want to deal with you, only crooks and maggots will come near you. Malaysia and Malaysian will be in great jeopardy !!

If you become PM, you could easily and habitually sell of our country for your personal gain or for some beutiful women. Your background is too stinking to be employed by any company, let alone a PM.

Believe me, if you or UMNO insist that you become PM, the agony of shame will turn into a powerful force to crush you.

You stink to high heaven, even the most foul smelling skunk in the world will have to concede the crown of stench to you.

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written by zandi, October 18, 2008 10:56:57

After all the lies that the Msian govt and Najib have been telling Msians, what made you think that we believe you on this. What %#@K%&G rules are you talking about. You bunch of M&%$#*F%$#@*% know fully well that you are all above the law, so why bother with the rules!!!

We don't bloody care whether TUDM knows! So what if TUDM know, they don't say any &*%K$#@ say in the decision to buy! And don't bullshit us with Open International Tenders. At this critical time, when Msians on the street are worried about whether he can even drive to work anymore and buy food for the family becos of the high cost of fuel & food, who bloody cares about performance of the copter in a conflict areas! Hhellooo....is Msia even a conflict area or near one right now???!

The public won't be this F*&^%$# Mad if not for the cost of the copters! IT IS THE PRICE OF THOSE COPTERS, STUPID! that make us freaking F%$#@&% MAAadDD! If Brazil can buy the same helicopters for RM82.8 million per unit, then WHY IS MSIA PAYING RM193 million per unit!!! We are paying twice as expensive than Brazil for the same stupid copter. If the Govt use the price difference (a cool RM1.33billion) to subsidies the price of rice or fuel, Msians at large will shower you blessings!

Btw, you think that telling the public the price of the tenders would make Msians feel better. Even then, in the 1st public statement on the matter by the DOF, you sneaky dungus are already trying to pull the wool over our eyes! You reveal to the public the price of the tenders but deliberately quoting the price in different currencies as follows (from MalaysiaInsider):

Abu Bakar (DOF Sec Gen) said a total of seven offers were received with the bidding pricing including delivery charges. The pricing offered by Eurocopter (Code tender: T521/07/A/006) was Euro 233,345,390.
Other tenders included T521/07/A/001 with the price in Pound Sterling amounting to 341,888,123; T521/07/A/002 (RM663,189,500), T521/07/A/003 (Euro 104,632,729); T521/07/A/004 (US$220,496,700); T521/07/A/005 (US$708,305,497) and T521/07/A/007 (US$348,178,365).

You deliberately use 3 different currencies and quote the lowest bid in RM so the price looks among the most expensive, and quote the highest Eurocopter deal in euros so that the price appears to be among the lowest. Don't try to insult our intelligence! The man on the street is much smarter than you politicians and govt officials in MOF & DOF put together!!!

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written by KBodoh, October 18, 2008 11:09:49

Who makes the rules? Ask the rest of the ministry.....no one knows. That is Malaysia.

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written by lynn, October 18, 2008 11:16:07

If the deal goes through, and if we are so fortunate to have a change of government soon, I propose Eurocopter be charged for abetting corruption too. Those involved found guilty, give them a few strokes of the rotan!

All the world's suppliers should love to deal with Bodohland - mark-up as agreed, split the cash in Paris, Zurich or anywhere, you name the city! Malaysian public who love bn are the suckers idiots!

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written by michael chick, October 18, 2008 11:31:17

******** FOR SALE !!! ********

Normal Stanley ScrewDrivers for USD 500,000 each. Lifetime Gurantee.
Comes with extensive Training and Courses.
Pure Halal oil used as anti-rust. 24hr Lifetime replacement Service.
Extensively tested and suitable for Tropical Use. NOT MadE in CHINA.
"Phillips Version" add extra USD 300,000 each.
"Ahmad VERSION" adD EXTRA USD 1,000,000 each. Was forged facing NorthWest.

Minimum quantity 1,000,000 pcs. Every Civil Servant needs one.
Hurry Limited stocks only. Buy over 10 million pcs, free trip into Outer Space.
Free C4 included for every "Mongolian Version"

Complies to all your Corruption Requirements.
Traceable, but you can ISA those who SMS about it.

Call Now: 1-800-STUPID-IDIOT

Truly Asia, Worships God of Money...

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written by zza11, October 18, 2008 11:53:42

The offer was about 233 hundred million euro i.e. about RM1.1 Bil but the award was RM2.3 Bil. This is very confusing.

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written by Wisdom above, October 18, 2008 12:48:06

Competency, Accountability ,Transparency ( CAT ) was not adopted and followed ?
WHY, WHY, WHY ..... ?

Most SPM students and STPM students know what " CAT " stands for ? - it Meow !

RELEASE RPK, and all ISA detainees. ABOLISH ISA NOW!
- This is also called 'CAT'.

My salute to all Peacemakers.

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written by Highway16, October 18, 2008 12:54:01

Hi zza11,

Why confused? Its RM 1.1 billion for the heli and RM 1.2 billion commission (duit kopi!). adds up to RM 2.3 billion!

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written by ASK4u, October 18, 2008 13:11:44

Channel News Asia news today 12.30P.M. screened the below:

1.Thai General Anupong Paochinda said if he were in the Prime Minister Somchai Wongsawat place, he would step aside to take responsibility for violence on Oct7 [In Thailand, keeping the Thai people's interest at heart, a General dare to go against his boss Prime Minister Somchai Wongsawat who is also the Defense Minister].

2. Thailand's anti-corruption body found Prime Minister Somchai Wongsawat guilty of neglecting his duties while working in the justice department 8 years ago.
Members of the National Counter Corruption Commission said Somchai was wrong to suspend a corruption investigation into two senior officials while he was a permanent secretary at the justice ministry in 2000.

Kudos to Thailand. Way to move forward. A true democratic power.

Compare and contrast the above TWO scenarios with happenings elsewhere.

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written by GeoGeo, October 18, 2008 13:45:56

RM82-8m = RM193m.

What rules the Ministry have ???

Make the rules public....we love to agree with you.

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written by GeoGeo, October 18, 2008 13:49:00

Can we file a complaint to the European Parliament about this deal ??

Also all earlier defence procurement deals.

Bombard the EU Parliament with emails on these corrupted deals.

Shame them all.

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written by Fuminari, October 18, 2008 13:50:45

""All rules were observed in acquiring helicopters, says ministry ""
sounds very straight! BUT what rules?whose rules?which rules?n where are the rules??who passed the rules??
the reality are,the so called rules are whims n fancy from a corrupted n tyrant regime created to hoodwink n make believe to cover up their rotten acts!!

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written by ez24get, October 18, 2008 13:58:13

Wait a minute....the overpriced helicopters is not the only damage that taxpayers have to pay.

Following the modus operandi of Razak Baginda, there must be another "intermediary" company which provides "expertise and services" in sourcing the supply of these helicopters. This company will receive the commissions "paid by" Eurocopter. The taxpayers will have to pick up the tab too!

This time they will be smarter. The intermediary company would probably be outside Malaysia such that it could not be traced!

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written by zza11, October 18, 2008 14:06:22

Dear Highway16,

That is why it is so confusing. Typically the commission is about 20% to 30% (remember the submarines). It seems they have gentlemen agreement (yes they are gentlemen too just like the Mafia) for the commission to be at certain limit because they care about the country and they don’t want it to go bankrupt. Why the commission is it about 100% now?

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written by johntyc, October 18, 2008 14:14:46

Just because the Eurocopter EC-725 scored the highest marks doesn't mean we should pay more!

So, why pay more? Is it another commission (in this deal aka embezzlement) thing just like the submarine deal?

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written by Wisdom above, October 18, 2008 14:15:43

"..Can we file a complaint to the European Parliament about this deal ?? "

I think France have a Department called "Anti-Corruption & Malpractice Agency"

Any 'Malaysian Malaysia' citizen has a 'Locus Standi ' to file a private complaint to get the investigation moving.

FRANCE practiced 'CAT ' in all their official enforcements.

Will the Legal advisers from Pakatan Rakyat file a private complaint now today.

Remember the contract must be signed first, stamped and validated , otherwise "No Offence " is committed at all !

Contract signed in FRANCE or in Malaysia ? Conflicts of International Laws !

RELEASE RPK, and all ISA detainees. ABOLISH ISA NOW!

My salute to all Peacemakers.

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written by densemy, October 18, 2008 15:19:33

Ma-LIES-ia.

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written by AngryTaxpayer, October 18, 2008 15:32:57

Of course all rules have been observed.......
The question is SIAPA PUNYA RULES !!??

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written by Proud_2b_Malaysian, October 18, 2008 16:31:22

When a Ministry is under any suspicion, the best way to clear it is by the good office of the Accountant General. They have the best understanding if the accusation of irregularity by the Defense Ministry on the Eurocopter case adhered to best practice and if the Ministry did it all at the best interest of the country. After all, the AG has brought to light highly expensive screw drivers purchased by their audit.

The Defense Ministry may have ensured that bases are covered by following the processes but the rationale of purchase and good procurement practice may not have mattered if there was any intent otherwise. Only the AG will know as the Defense Ministry will always deny any wrong doing. It will be a grave mistake to admit to anything else. Following procedures does not make a wrong right, or does it?

http://proud2bmalaysian.wordpr...s-faulted/

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written by Proud_2b_Malaysian, October 18, 2008 17:09:04

Buying a screw driver worth RM5 for RM5,000 is not wrong if it adheres to the rules of government procurement. The Ministry got it all wrong. Just because if they paid RM4,995 more for something doesn't make it wrong because the procedure was followed.

Well, that's how our government works. Abusing the rights as public servants and working against public interest is OK if procedures are followed. The question is did the Defense Ministry made the award for Eurocopter against public interest? Not if procedures were followed!

Viva la Malaysia!

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written by jargon, October 18, 2008 17:57:13

They shud all work for Somalian pirates at least we know, as pirates, they have no intergrity , robbing and cheating the rakyat and now using ISA.Simply disgusting....

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written by SeriousLy, October 18, 2008 18:04:13

Shit..I'm so ....Who the hell are going to have war with those helicopter?

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written by aryn, October 18, 2008 18:04:48

Remember that reconditioned (inflated cost) scorpene sub which Najib 'launched' before delivery in FRance?

Now we are buying choppers from France again?

Someone should send a posting to the EU Parliament about this shaddy deal. Too costly. Tuan penasihat, 25 percent!

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written by GeoGeo, October 18, 2008 18:17:21

"""I think France have a Department called "Anti-Corruption & Malpractice Agency"

Any 'Malaysian Malaysia' citizen has a 'Locus Standi ' to file a private complaint to get the investigation moving.

FRANCE practiced 'CAT ' in all their official enforcements.""""


I'm not a M'sian;

Can someone in M'sia take the lead to get lope going ???

TQ Wisdom Above.

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written by Fuminari, October 18, 2008 18:49:32

in somalia,they are infested with pirates,in solomia malaysia, we are badly infested with thieves,bandits n robbers from the barbaric umnogoons!!

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written by george3, October 18, 2008 19:18:22

I m thinking what can we do to help save our money from this corrupt undertable practise....

1. Bring this case to international court?

Anybody would like to proceed?

Better than just complaining and no action

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written by miwaki, October 18, 2008 19:31:25

In our country,everything is done according to procedures.However at a much higher cost because we are incompetent if compare to other countries.These people still think they are competent,actually they are all failures.

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written by Steven Tan, October 19, 2008 01:15:08

All these people who're defending the idea to purchase Eurocopter EC725 will get their shares from that RM1.3 billion later, other wise they won't take the trouble to support these proposal. We are not in war with any country. Anyway, non of us are against the idea of purchasing this Eurocopter EC 725 BUT our question is why the price is RM193 Millon per unit... When Brazil can get it for RM82.8 Million per unit, why CAN'T we get it in the same price????? Unless if you people are saying that the Eurocopter EC 725 that Mindef planned to buy are all GOLD PLATED. Dear Datuk Abu Bakar Abdullah, even your kids won't believe this logic .

The price of the Eurocopter EC 725 which Malaysia going to buy is RM193 Million (USD54 Million) per unit BUT the same helicopter which Brazil going to buy is RM82.8 million (USD23 Million) per unit .

The price of the Sukhoi Su-30MKM which Malaysia bought was >< RM175 Million (USD50 Million) per unit BUT the same Sukhoi Su-30MKM purchased by Indian Army costing about >< RM140 Million (USD39 Million) per unit .

Anyway it looks like the Boeing 737 Jetliner which can carry >< 150 people excluded the cargo is much more cheaper than Eurocopter EC725. The price of the Boeing 737 version is about RM175 Million (USD50 Million)

May be this joke suits the purchasing fomula used in Malaysia

Tenderer 1

Interviewer: Your bid is 3 million. How do you justify your tender sum?

Korean tenderer: 1 million for labour, 1 million for materials and 1 million for expenses and a little profit.

Interview: Ok. Thank you. Next!


Tenderer 2

Interviewer: Your bid is 6 million. How do you justify your tender sum?

Japanese tenderer: 2 million for labour, 2 million for materials and 2 million for expenses and a little profit.

Interviewer: Ok. Thank you. Next!


Tenderer 3

Interviewer: Your bid is 9 million. This is way above everyone else. How do you justify your tender sum?

Malaysian tenderer: 3 million for YOU, 3 million for ME, and we get the Koreans to do it for 3 million .

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written by Highway16, October 19, 2008 01:41:49

Hi zza11 again

You are 100% correct. Commission is generally 20-30%, pretty fair.

This one is duit kopi! Much higher. This is a one time deal. How many times will the Defence be buying helicopters?

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