Govt denies paying 114 million Euros commission in purchase of submarines
Bernama (14/5/08): The Defence Ministry Wednesday reiterated that the government had never paid 114.96 million euros in commission to Perimekar Sdn Bhd in connection with the purchase of two Scorpene-class submarines.
On the contrary, Defence Minister Datuk Seri Najib Tun Razak said, the purchase was done through direct negotiations in line with the government's procurement method with the submarine makers, France and Spain.
"The Defence Ministry would like to stress that the claim by Permatang Pauh MP (Datin Seri Dr Wan Azizah Wan Ismail) is baseless," he said when winding up the debate for his ministry on the motion of thanks for the royal address at the Dewan Rakyat Wednesday.
Debating the motion recently, Wan Azizah claimed that there were elements of corruption in the purchase of the two submarines as well as the 18 Sukhoi fighter jets.
Explaining further, Najib said, the 114.96 million euros paid to Perimekar Sdn Bhd was not a commission but rather, a payment to provide coordination and support services to the Malaysian navy's submarine project team in Cherbourg, France, and in Cartegana, Spain, as well as the submarine trainees in Brest, France.
Perimekar Sdn Bhd is owned by the Armed Forces Fund, Boustead Holdings Sdn Bhd and K.S. Ombak Laut Sdn Bhd.
Najib said: "The government did not make any purchase negotiations with Perimekar Sdn Bhd. Instead, the company was given a contract to provide the coordination and support services for a period of six years."
Among others, the services include providing accommodation and equipment for the project's team in France and Spain for a period of six years; providing insurance coverage for the personnel and their families as well as the submarine crew in France and Spain; to pay daily allowance and submarine crew allowance of 50 euros a day for each personnel for the first three years, and 60 euros a day for each personnal for the second three-year period.
Najib said the 114.96 million euros contract value would be paid in stages in line with the progress of the submarine project.
As of now, a total of 95.54 million euros or 83.11 per cent of the amount had already been paid to the company, he said.
Najib also said the government had never made commission payment to IMT (M) Defence Sdn Bhd in the purchase of the Sukhoi jetfighters.
"The accusation by members of the House that the government paid commissions in the purchase of the submarines and the Sukhois was not true and is a concerted attempt at confusing the people for their own political gain," he said.
On the price difference between the purchase of the Sukhois by Malaysia and India, Najib said, it was due to the way the jetfighters were configured as well as the number of aircraft purchased.
Malaysia bought 18 Sukhois compared to India's 180, said Najib, adding that the government had carried out a thorough study including making price comparison with the acquisition made by the Indian air force.
At the end of the speech, Najib made reference to the murder of Altantuya Shaariibuu by saying that he had never known, let alone met, the Mongolian woman.
"God willing, I'm still able to withstand all the lies aimed at tarnishing my name. Let the court carry out its duty and uphold justice. At the same time, I pray that the truth will prevail," he said.
On the contrary, Defence Minister Datuk Seri Najib Tun Razak said, the purchase was done through direct negotiations in line with the government's procurement method with the submarine makers, France and Spain.
"The Defence Ministry would like to stress that the claim by Permatang Pauh MP (Datin Seri Dr Wan Azizah Wan Ismail) is baseless," he said when winding up the debate for his ministry on the motion of thanks for the royal address at the Dewan Rakyat Wednesday.
Debating the motion recently, Wan Azizah claimed that there were elements of corruption in the purchase of the two submarines as well as the 18 Sukhoi fighter jets.
Explaining further, Najib said, the 114.96 million euros paid to Perimekar Sdn Bhd was not a commission but rather, a payment to provide coordination and support services to the Malaysian navy's submarine project team in Cherbourg, France, and in Cartegana, Spain, as well as the submarine trainees in Brest, France.
Perimekar Sdn Bhd is owned by the Armed Forces Fund, Boustead Holdings Sdn Bhd and K.S. Ombak Laut Sdn Bhd.
Najib said: "The government did not make any purchase negotiations with Perimekar Sdn Bhd. Instead, the company was given a contract to provide the coordination and support services for a period of six years."
Among others, the services include providing accommodation and equipment for the project's team in France and Spain for a period of six years; providing insurance coverage for the personnel and their families as well as the submarine crew in France and Spain; to pay daily allowance and submarine crew allowance of 50 euros a day for each personnel for the first three years, and 60 euros a day for each personnal for the second three-year period.
Najib said the 114.96 million euros contract value would be paid in stages in line with the progress of the submarine project.
As of now, a total of 95.54 million euros or 83.11 per cent of the amount had already been paid to the company, he said.
Najib also said the government had never made commission payment to IMT (M) Defence Sdn Bhd in the purchase of the Sukhoi jetfighters.
"The accusation by members of the House that the government paid commissions in the purchase of the submarines and the Sukhois was not true and is a concerted attempt at confusing the people for their own political gain," he said.
On the price difference between the purchase of the Sukhois by Malaysia and India, Najib said, it was due to the way the jetfighters were configured as well as the number of aircraft purchased.
Malaysia bought 18 Sukhois compared to India's 180, said Najib, adding that the government had carried out a thorough study including making price comparison with the acquisition made by the Indian air force.
At the end of the speech, Najib made reference to the murder of Altantuya Shaariibuu by saying that he had never known, let alone met, the Mongolian woman.
"God willing, I'm still able to withstand all the lies aimed at tarnishing my name. Let the court carry out its duty and uphold justice. At the same time, I pray that the truth will prevail," he said.
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