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Malaysia's Eurocopter selection kicks up dirt PDF Print
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Friday, 24 October 2008 10:25

Controversy surrounds Malaysia's decision to select the Eurocopter EC725 Cougar to replace its Sikorsky S-61 "Nuri" helicopters, with competitors and opposition parties taking the government to task for selecting the type without conducting flight trials.

The EADS subsidiary confirms that it is in negotiations to sell 12 helicopters with Malaysia's defence ministry, which chose the type over the AgustaWestland AW101, Boeing CH-47, Kazan Mi-172, Mil Mi-17 and Sikorsky S-92. "We have received a letter of intent and we hope to sign a contract shortly," Eurocopter says.

"Eurocopter offered a system that was proven, and this also fulfilled the army's specifications," says the defence ministry's secretary-general Abu Bakar Abdullah. He adds that the proposal received the highest marks in a technical evaluation, offered a competitive offset package and had the most reasonable price.

Eurocopter EC725 Patrick Penna Eurocopter
 © Patrick Penna/Eurocopter

However, Malaysia's Public Accounts Committee (PAC), a parliamentary body that looks into government funding, has begun an investigation into the tender after complaints that it was skewed in Eurocopter's favour.

Industry sources say the Royal Malaysian Air Force and defence ministry did not issue a shortlist from the invited bidders, a normal practice in military contracts, and failed to conduct proper flight trials after the companies responded to last year's request for proposals.

In response, Bakar says the air force had kept abreast of the latest advances in military helicopter technology by visiting defence shows. "There is no need for the technical committee to do physical evaluations of the helicopters at the bidders' facilities," he says. "This would also mean that the transparent process and integrity of the six men in the technical committee would not be compromised."

Opposition members of parliament, however, have called on the government to suspend the letter of intent until the committee completes its investigation. "The PAC should also scrutinise the way the tender team has carried out the selection and check the scoring system to ensure there is no partiality in the grading," says one.

Despite the controversy, most industry sources do not believe the defence ministry will call off the tender. "They have decided on the EC725 and they are unlikely to change their mind. Even if a fresh tender is called, it is still likely to go to Eurocopter," says one source close to the defence ministry.

Others suggest that Kuala Lumpur, which requires about 48 helicopters to replace its Nuris, could go for another supplier in a follow-up tender. The Malaysian army also has a separate requirement for utility helicopters.

Replacing the S-61s has taken on added urgency after several fatal crashes in the past few years, including six people killed in a July 2007 accident.

The air force's requirement was for a type with a glass cockpit, retractable landing gear and foldable rotor blades that can perform search and rescue operations or transport around 20 personnel by day or night. The government is believed to want to complete deliveries by early 2010.

Malaysia has several other pending helicopter requirements, including one for an additional six AgustaWestland Super Lynx 300 helicopters and six SAR aircraft for its Maritime Enforcement Agency.

- FlightGlobal

Comments (20)Add Comment
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written by ahmadneil, October 24, 2008 10:36:19
Eurocopter deal is another opportunities for kickbacks.
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written by thor, October 24, 2008 10:37:43
More smoke and expensive Cuba Havana Cigars all round !!!


GOD SAVE OUR PEOPLE FROM THE WOLVES
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written by educationist, October 24, 2008 10:50:01
"They have decided on the EC725 and they are unlikely to change their mind. Even if a fresh tender is called, it is still likely to go to Eurocopter,"
Malaysia Boleh!!
Despite a savings of RM1.419 billion if it's more worthwhile competitor is chosen.
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written by Democrats, October 24, 2008 10:51:01
"Most reasonable price?".

Whats the comparison? Are there two tenderers offering the same helicopter specifications?
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written by arazak, October 24, 2008 10:51:50
Defence Ministry's Secretary-General Abu Bakar Abdullah said. . .

"There is no need for the technical committee to do physical evaluations of the helicopters at the bidders' facilities," he says. "This would also mean that the transparent process and integrity of the six men in the technical committee would not be compromised.”
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Even when buying cheap electronic equipment such as a flashlight, hand calculator or, a transistor radio; a person with a rational mind would want to physically “inspect and test” the products first before buying them rather than relying solely on the words of the seller.

Now this idiot is saying for this multi-billion Ringgit purchases there is no need to do “physical evaluation” (inspection?). Was this a system used by the Ministry of Defence of trying to make it easy for wholesale looting of the rakyaats’ money by these unscrupulous people?

This idiot should also be investigated. . ., what is the pelican-chinned ACA Director doing?

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written by Counterpointer, October 24, 2008 11:35:45
If the Auditor General can find misappropriation of public funds for those relatively tiny items and PAC cannot find a single thing wrong with those huge costs, where misappropriation can easily get buried in those figures, and we continue not to do anything about it, then I guess we really deserved to be properly screwed by this gomen .



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written by Xerxes, October 24, 2008 11:40:53
"There is no need for the technical committee to do physical evaluations of the helicopters at the bidders' facilities," he says. "

No need to do physical evaluations for a multi billion dollar purchase??!!! This is either the height of stupidity or our pilots do not want to reveal they do not know how to test fly it or there is a stinking mess in this deal somewhere. I wouldn't even buy a car without test driving it first let alone a multimillion ringgit helicopter. Or is there another beautiful translator somewhere in this deal that it can be closed in the bedroom and not on the airfield?

Lets have the truth and nothing but the truth.
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written by taishan, October 24, 2008 11:47:00
"No need to involve the six men in the technical committee".

So, less to share the loot ?
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written by chrisyong, October 24, 2008 11:55:26
PAC should also investigate further the justification to replace Nuris, is it justified to replace them with something billion more than the next closest bid? Why is it so dfficult for the tender process to be COMPLETELY TRANSPARENT and ACCOUNTABLE! Why? If there is no hanky panky then ALL DOUBTS must be cleared! In the face of very challenging times ahead, save every cent possible and channelled them to ValueCap instead of putting our hard earned EPF money at RISK.
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written by ATSaari, October 24, 2008 12:24:47
STOP NAJIB FROM BEING OUR PRIME MINISTER!

A few days with the Finance Ministry - RM5billion was taken out from KWSP to bail out God knows who.

Decades in Defence Ministry - Gods knows how much he was enriching himself and his military cahoots.

Where is the accountability, justice and most of all the selective BPR?
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written by Tornado, October 24, 2008 12:40:20
More soldier down by pen rather by bullet?

Still EC 725 is not a correct candidate to replace S-61N Nuris. ATM needs about 30 - 35 unit helo to fully replace Nuris. If counting on budget, ATM can easily replace all Nuris if choosing Mi-172.

Eventhrough Mi-172 older than EC 725 and some may arguing Mi-172 coz its made in soviet/CIS, but we should think positively by look at this fact :-
1. MiG 29N (1977) orders in 1995. Being upgrade by mixed with western and post soviet technology with reseasonable price & cost.
2. PT-91M Pendekar is upgrade & rebuilt version of Soviet MBT T-72 (1971) which show poor performance during Gulf war (1 & 2). Also being upgrade with France (mostly by Sagem), Polish and ex-soviet Technology. With performance believe to be par with most western MBT (such as M1 Abrams, Merkava III/IV, Challenger 2 and Leopard 2), the PT-91M seem to be value added becoz of its price/performance.
3. Su-30MKM, upgrade version of Su-27 (1984) believe to be the best MRCA in Asia. With latest Russian Technology ( such as IRTS, Engine c/w TVR, latest Radar c/w ECM) combine with western Avionics (mostly from France), believe to be better than US F-15E/F Strike Eagle, EURO Eurofighter Typhoon, France Dassault Rafale or Swedish Saab 39 Grippen.

WHY not Mi-172????
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written by cheekhiaw, October 24, 2008 12:49:18
May be because Mi-172 cannot be upgraded with more curi-curi features?

xxx
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written by ahmadneil, October 24, 2008 15:16:25
More commissions for shopping trips to London,Paris and New York.
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written by aryn, October 24, 2008 15:43:45
Even the Indian, Singapre and Brazil govts would not play the fool when come to arming and equipping their military defenses.

They would squeeze hard from the suppliers in order to get the best bargain.

But for the Malaysian govt, correction, under Najib as Defence Minister then, itu personal untung mau kira dulu.

So sorry for our military men to his this kind of leader and so sad for the rakyat too.
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written by asguard, October 24, 2008 16:00:38
This just one of twisted arms scandal... like normal no one wants admit it...
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written by sukinong, October 24, 2008 16:39:39
"There is no need for the technical committee to do physical evaluations of the helicopters at the bidders' facilities," he says.

The brochures says that the copter can kentut and berak on the enemy is an extra feature. Without checking, the ministry says it a good buy. That's why most Malaysian have to buy Proton cars.
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written by loosecannon, October 24, 2008 17:09:06
No need further evaluation? Just buy after a visit to an air show? And buying it at double the price that other countries paid? Just how bloody stupid can you get. This is unbelievable. The whole thing smack of corruption to the highest level. No doubt about it. How much more are we going to be screwed by these thieves? The opposition must dig and dig deep. We the rakyat demand it!
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written by ibabonma, October 24, 2008 17:24:21
We can do nothing except bark, bark and bark at the UMNO dogs.
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written by cruzeiro, October 24, 2008 20:03:57
yes ibabonma,

That's becos they have all the 'teeth' in a 'safe place'.

However with further 'barking' their true colors will be revealed enough to make them get rejected in due time.
In fact their own stalwarts are now already saying that they have lost all moral authority to rule ....

Slow & steady bro - we'll get there.
Don't get discouraged as "some" bloggers already are .... rome wasn't built in a day.
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written by johanssm, October 24, 2008 23:10:34
ibabonma , now is not the time to gives up.
Cruzeiro is right , we need to be steady.
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