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.

I never met or knew Altantuya, Najib tells Parliament

The Star (14/5/08): Deputy Prime Minister Datuk Seri Najib Tun Razak reiterated in Parliament Wednesday that he had never met nor knew murdered Mongolian woman Altantuya Shaariibuu.

He said he did not want to make any further comments on the matter as the hearing of the case was still going on.

"I know that some of the Dewan Rakyat members are concerned about the court case of the murder of the Mongolian woman, and I also know that there are some members who deliberately tried to link my name to the case,"

"Let the court play its role and carry out its responsibility to uphold justice in this country without any party interfering," he said

The Deputy Prime Minister, who is also Defence Minister said the Government had never paid anyone commission for the procurement of two Scorpene submarines and 18 Sukhoi fighter jets.

He said both projects involved only direct negotiations between Malaysian firms and the countries that sold the submarines and the fighter planes.

"On the allegation made by Yang Berhormat Permatang Pauh (Opposition Leader Datin Seri Dr Wan Azizah Wan Ismail) that Syarikat Perimekar Sdn Bhd had received a commission of 114.96mil Euros in the procurement of Scorpene submarines, the ministry wants to stress that the Government has not and had never paid any commission directly or indirectly to the company.

"On the procurement of Sukhoi, I also want to stress that the Government had never paid any commission to Syarikat IMT (M) Defence Sdn Bhd as alleged," Najib said in his winding up speech on the motion of thanks on the Royal Address in the Dewan Rakyat .

On the issue of National Service, Najib said the Government would continue with the programme as it promoted unity although there were accidents and death cases

He said since the programme started in 2004, there had been 16 death cases, of which 11 trainees died in their camps.

"The people are very happy with the programme despite the death cases. Their response is proven in the increased number of voluntary trainees from 929 last year to 1,137 this year," said Najib.

Malaysia's No. 2 leader rejects opposition claims of corruption

PR-Inside (14/5/08): Malaysia's deputy prime minister defended himself Wednesday against accusations of corruption that the opposition says make him unfit to become the country's leader.

Najib Razak, who is also defense minister, has been increasingly targeted by the opposition, which has sought to link him to scandals, including allegedly dubious defense
contracts and the slaying of a Mongolian woman.

In a speech to Parliament, Najib said the opposition has made "completely baseless" claims that major military procurements conducted by his ministry were tainted by graft.

Many politicians expect Najib to succeed Prime Minister Abdullah Ahmad Badawi. After their ruling coalition suffered stinging losses in March general elections, Abdullah pledged to hand over power to Najib in a leadership transition they would start planning after December.

Najib rejected accusations that his ministry misled the public about deals to buy French submarines in 2002 and Russian fighter aircraft in 2003. Opposition leaders have claimed massive commissions were paid to facilitators of the two deals.

"There's no need" for an independent inquiry into the purchases, Najib said.

Rivals have also claimed Najib was involved in the slaying of a Mongolian interpreter, Altantuya Shaariibuu, in late 2006. Two policemen are on trial for allegedly using explosives to destroy Shaariibuu's remains in a jungle clearing near Kuala Lumpur.

Abdul Razak Baginda, one of Najib's close associates, has been charged with abetting the murder of Shaariibuu, with whom Abdul Razak had an affair.

Najib reiterated Wednesday that he was not involved in the death and said he never met Shaariibuu.

Opposition activists have not produced solid evidence to substantiate their claims against Najib, but have widely spread their criticism through public speeches and Web sites. (AP)