Wednesday, October 15, 2008

Malaysia RM2.3 Billion Eurocopter Scandal

Malaysia mass media and blogs are buzzed with the latest fiasco, i.e. the alleged RM2.3 Billion Eurocopter scandal that the opposition group claimed that the deal lacks accountability and integrity.

Abdullah should be aware that his first act as Defence Minister, announcing that the Defence Ministry has agreed to acquire new helicopters from European helicopter manufacturers, Eurocopter, to replace the Nuri has been immediately dogged by integrity and transparency questions – in particular, the allegation about the involvement of his son Kamaluddin in the Eurocopter deal. ~~ LimKitSiang.

The Eurocopter Cougar EC725 was one of four aircraft shortlisted by RMAF to replacing the aging Nuri helicopters. The other three were the Sikorsky S92, Agusta Westland EH-101 Merlin and the Russian-made Mil Mi-17 Hip.

Some party claimed that Eurocopter Cougar EC725 is a 40-year old aircraft, certified in the 60s and 70s but has been redeveloped and refitted all these while and given a new name or model (variants).

Technically, the Eurocopter Cougar EC725 (first flight in 2000) was developed from a previous model called Eurocopter AS 532 (1977). Eurocopter AS 532 itself was developed from Eurocopter Super Puma (1978). Eurocopter Super Puma was developed from Aérospatiale Puma (1968). The year in bracket denotes year of introduction of that particular model.

The Public Accounts Committee (PAC) today decided to discuss the controversy surrounding the tender process for the procurement of new helicopters for the armed forces at its next meeting. - MalaysiaKini.

UPDATES:
* Oct 27, 2008: RM2.3 billion Eurocopters contract must be probe
* Oct 26, 2008: Eurocopters deal canceled
* Oct 26, 2008: Call to suspend Eurocopter deal
* Oct 21, 2008: Why RMAF choose Eurocopter
* Oct 18, 2008: Mindef explains Eurocopter deal but questions remained






LimKitSiang: Why Eurocopter’s Cougar has been selected to replace Nuri

The Prime Minister-cum-Defence Minister, Datuk Seri Abdullah Ahmad Badawi should set an example of integrity and transparency by making public the details of the shortlisted bids for the four aircrafts to replace the RMAF Nuri helicopters and the reason why Eurocopter’s Cougar EC725 has been selected.

It is a sad commentary on the failure of Abdullah’s National Integrity Plan that Malaysia’s latest ranking on the Transparency International Corruption Perception Index has plunged 10 places in his five years as Prime Minister from No. 37 in 2003 to No. 47 in 2008 and a deepening crisis of confidence about integrity and transparency.

Abdullah should be aware that his first act as Defence Minister, announcing that the Defence Ministry has agreed to acquire new helicopters from European helicopter manufacturers, Eurocopter, to replace the Nuri has been immediately dogged by integrity and transparency questions – in particular, the allegation about the involvement of his son Kamaluddin Abdullah in the Eurocopter deal.

It is for this reason that Abdullah should make public the details of the shortlisted bids by the four aircrafts to replace the RMAF Nuri helicopters and the reason why Eurocopter’s Cougar EC725 has been selected.

If no full explanation is forthcoming from Abdullah, I will be raising this issue in Parliament when it reconvenes on October 13.

The Eurocopter Cougar EC725 was one of four aircraft shortlisted by RMAF. The other three were the Sikorsky S92, Agusta Westland EH-101 Merlin and the Russian-made Mil Mi-17 Hip.

It has been reported that the government had allocated US$600 million (RM1.93 billion) to buy an initial fleet of 12 helicopters, which will be in service until 2050.
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LimKitSiang: The RM2.3 billion Eurocopter fiasco - suspend Letter of Intent

The first thing Datuk Seri Abdullah Ahmad Badawi did as Defence Minister was to announce on 26th September that the Defence Ministry has agreed to acquire new helicopters from European helicopter manufacturer, the Eurocopter, to replace the Nuri.

This RM2 billion deal lacks accountability and integrity.

Four helicopters had been “short-listed” by the Ministry of Defence to replace the fleet of Sikorsky S61-A4 Sea Kings better known as the Nuri.

The four are the Eurocopter Cougar EC725, Sikorsky S92, Agusta Westland EH-101 Merlin and the Russian-made Mil Mi-17 Hip.

However, Abdullah shocked everyone with his announcement as the “short-listing” had not been completed and the pricing of the EC725 is not competitive compared with the other helicopters.

The pricing offered by the “short-listed” helicopters are:

Eurocopter Cougar EC 725 – Euro 463.44 juta (RM2.317 billion);
Sikorsky - US$427.20 juta (RM1.45 billion)
Canadian Kelowna Flightcraft Ltd. Model Kazan MI-172 buatan Russia
- US$312 juta (RM1.061 billion)

This means that there is a difference of RM1.256 billion between Eurocopter Cougar EC 725 with the lowest bidder, the Kazan MI-172 KF – in other words, with US$600 million the Royal Malaysian Air Force can buy 26 units of Kazan helicopters and not just 12 Cougar helicopters.

In his speech yesterday, the Opposition Leader, Datuk Seri Anwar Ibrahim referred to the complaint by the Chairman of Mentari Services Sdn. Bhd. Kapt (B) Dato’ Zahar Hashim about the irregularity of the Eurocopter decision, and this is not just confined to the Kelowna Flightcraft Limited, Canada which submitted the bid for the Russian helicopter but also the other “short-listed” bidders as well, viz:

• Proses penilaian belum selesai tetapi dengan secara tiba-tiba arahan diberi oleh pihak tertentu supaya Letter of Intent (LOI) dikeluarkan kepada Eurocopter. LOI tersebut ditandatangan oleh seorang pegawai paras menengah di Kementerian Pertahanan dan bertarikh 15th Septmber 2008 iaitu dua hari sebelum Datuk Seri Najib Razak berpindah dari Kementerian Pertahanan ke Kementerian Kewangan.

• Kerja yang sudah selesai adalah penelitian dokumen-dokumen tender yang dikemukakan oleh penender-penender. Penilaian fizikal iaitu memeriksa permis dan kilang penender-penender dan melakukan penerbangan ujian (test flights) belum dilakukan oleh kerana kebenaran dari pihak atasan di Kementerian Pertahanan dan Kementerian Kewangan untuk berbuat demikian belum diperolehi. Sewajarnya, penilaian fizikal adalah lebih mustahak dari penilaian dokumen-dokumen (documentary evaluation) dan anggota-anggota yang terlibat berasa hairan apabila mengetahui bahawa LOI telah dikeluarkan sebelum penilaian fizikal dilakukan.

• Proses pengeluaran LOI kepada Eurocopter agak luar biasa dan bertentangan dengan prosedur yang telah diamalkan selama ini. Biasanya LOI dikeluarkan setelah proses penilaian secara menyeluruh selesai dan sebuah jawatankuasa yang dianggotai oleh wakil-wakil dari Kementerian Kewangan dan Kementerian Pertahanan capai kata sepakat tentang produk yang terbaik bersesuaian dengan belanjawan yang telah diperuntukkan. Mereka turut berpendapat bahawa adalah menakjubkan bahawa LOI bagi kontrak yang bernilai melebihi Dua Bilion Ringgit ditandatangan oleh seorang pegawai Kerajaan bertaraf Setiausaha Bahagian dan bukan seorang yang bertaraf sekurang-kurangnya Timbalan Ketua Setiausaha.

The following are therefore the issues and questions:-

• Technical evaluation process did not follow standard international practice and was not transparent.

• Short-listing of the aircraft not as normally practiced in such tender process.

• What is the criteria for evaluating these aircraft. Is it following standard evaluation process in technical terms. Has it carried out any flight evaluation of all the aircraft.

There have been cases where manufacturers have not been able to prove what they have written in paper when flight test was carried out. There has also been instances where the manufacturers had used a different and higher performance aircraft than was specified in the written technical paper during flight test. This is why it is VERY important that a flight test valuation is carried out to ensure they comply with the specs given in the written documents.

I understand that the EC725 selected is a 40-year old aircraft, certified in the 60s and 70s. It has been modified and upgraded all these while and given a new name and term. Can this EC 725 be guaranteed to last another 40 more years with all the modifications and upgrading anticipated?

If RMAF is buying this 40-yr old aircraft, then it might as well keep the Nuris, modify and upgrade them now. It will cost only a fraction of a new aircraft, especially taking into account the Sikorsky offer had reported by Berita Minggu of 1st June 2008, viz:

Syarikat pengeluar helikopter terkemuka dunia, Sikorsky Aircroft Corporation (Sikorsky) membuat tawaran kepada Kementerian Pertahanan untuk membeli kembali 29 helikopter Nuri atau Sikorsky S-61-A4 Sea Kings, jika Malaysia membuat keputusan membeli helicopter barunya, Superhawks S-92 untuk kegunaan Angkatan Tentera Malaysia (ATM).

Eksekutif Jualan Serantau Sikorsky bagi Asia, Scott Pierce, berkata tawaran itu dibuat melalui bida dikemukakan syarikatnya kepada kementerian berkenaan, selepas Malaysia mengumumkan tawaran tender terbuka antarabangsa berhubung pembelian helicopter baru bagi pasukan itu.

Katanya, jika Malaysia memutuskan terus menggunakan Nuri bersama helicopter terbarunya, Sikorsky yang juga anak syarikat United Technologies Corporation (UTC), menyatakan komitmen membaik pulih atau meningkatkan khidmat Nuri di Negara ini.

“Sikorsky sedia membeli semua baki Nuri daripada TUDM untuk dijual kepada mana-mana pihak yang berminat, tetapi juga TUDM masih mahu menggunakan Nuri bersama helicopter S-92, kita sanggup membaik pulih dan meningkatkan helicopter berusia lebih 40 tahun itu, termasuk menukar daripada kokpit konvensional kepada kokpit kaca (digital).

“Tugas balik pulih Nuri akan membabitkan pemindahan teknologi terkini dan kepakaran kepada orang tempatan”, katanya kepada Berita Minggu pada temu bual di sini, baru-baru ini.

I am not a spokesman for Sikorsky, but this offer warrants an explanation from the Ministry of Defence as to the critera for the final selection of Eurocopter among the four “short-listed” bids.

The government had allocated US$600 million (RM1.93 billion) to buy an initial fleet of 12 helicopters, which will be in service until 2050.

Last year, the government cancelled a defence deal with the European aerospace giant EADS (European Aeronautic Defence and Space Company) for 197 helicopters to the country’s army following adverse observations by Indian watchdog authorities over alleged irregularities in the defence bidding process.

According to published reports, Eurocopter allegedly used a local firm, Global Vectra Helicorp, to help broker the deal despite a ban in India on the use of middlemen in defence deal.

Eurocopter was also accused of presenting a civilian helicopter instead of a military version for statutory field trials by the Indian army.

But what should attract the attention and concern of Parliament is that the EADS deal to sell 197 Eucopters to the Indian government was a US$600 million which the Indian government subsequently cancelled.

Parliament and the nation are entitled to know why for the same amount of US$600 million, the Indian government was offered 197 Eurocopters as compared to 12 Eurocopters to Malaysia.
In the name of accountability, transparency, integrity and good governance, I call for the immediate suspension of the RMAF helicopter award to subject it to a proper and above-board procurement process.
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NST Online: Nuri to make way for Eurocopter's Cougars

KUALA LUMPUR: The Royal Malaysian Air Force will replace its ageing helicopter fleet of Sikorsky S61-A4 Sea Kings, better known as the Nuri, with Eurocopter's Cougar EC725.
Prime Minister Datuk Seri Abdullah Ahmad Badawi announced this yesterday after a parade at Wisma Pertahanan to welcome him as defence minister.

"We have signed a Letter of Intent with Eurocopter.

"Mindef has taken into consideration its needs and Eurocopter presented the best option among all the bidders."

The Eurocopter Cougar EC725 was one of four aircraft shortlisted by RMAF. The other three were the Sikorsky S92, Agusta Westland EH-101 Merlin and the Russian-made Mil Mi-17 Hip.
The manufacturers all bid for the contract in an open international tender held during the last Langkawi International Maritime and Air Show.

It was reported that the government had allocated US$600 million (RM1.93 billion) to buy an initial fleet of 12 helicopters, which will be in service until 2050.

Eight are planned for RMAF's Nuri replacement programme.

Abdullah said he had also stressed the importance of energy efficiency to the ministry staff, especially in the construction of housing for them.

"I have asked them to utilise IBS (Industrialised Building Systems) for the ministry's housing programme.

"We will have cost savings. Houses will be built faster while maintaining the quality."

Abdullah said previous attempts at using IBS had failed as the Public Works Department was not ready to employ the technique.

He said IBS would be used on housing projects in at least 12 camps.

The IBS is a construction process has been talked about for more than a decade and it utilises techniques, products, components or building systems that involve prefabricated components like steel structures and pre-cast concrete and on-site installation.

Many developed countries, where labour is comparably more expensive, favour the IBS because pre-casting components at the factory saves costs, reduces labour and wastage and improves quality through standardisation.

The government has previously voiced its hopes that IBS would help reduce dependency on foreign workers by 30 per cent by 2015.

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Suara KeADILan Online: Pembelian Eurocopter: Skandal Najib didedah

BELUM pun selesai skandal komisyen jet pejuang Sukhoi dan kapal selam Scorpene, Timbalan Perdana Menteri Najib Tun Razak terpalit dalam satu lagi skandal: kontrak perolehan Eurocopter menggantikan helikopter Nuri.

Merasmikan sesi terakhir penggal pertama Persidangan Dewan Rakyat, Ketua Pembangkang Anwar Ibrahim membongkar kecurigaan-kecurigaan serius dalam perolehan helikopter berdaya tinggi ini.

Anwar berkata demikian dengan merujuk kepada surat rasmi yang dihantar syarikat pembida helikopter, Mentari Services, kepada Timbalan Perdana Menteri Najib Abdul Razak. Surat tersebut mendedahkan kerajaan telah bersetuju membeli 10 unit Eurocopter, walhal pembida lain menawarkan helikopter berkeupayaan sama pada nilai yang jauh lebih menjimatkan.

Pada 26 September lalu, Perdana Menteri Abdullah Ahmad Badawi mengumumkan kerajaan akan menggantikan angkatan helikopter Nuri kepada Eurocopter Cougar EC725 buatan Perancis. Bagi tujuan tersebut, kerajaan memperuntukkan sekurang-kurangnya RM1.93 bilion untuk membeli 12 unit helikopter baru.

Helikopter Eurocopter Cougar EC725 adalah satu dari empat jenis helikopter yang disenarai pendek oleh Tentera Udara Diraja Malaysia (TUDM). Keempat-empat syarikat terbabit dalam bidaan tersebut menawarkan spesifikasi memenuhi kehendak Kementerian Pertahanan (Mindef).

Harga tender yang ditawarkan Eurocopter bagi 10 helikopter itu adalah RM2.317 bilion dan adalah harga yang paling tinggi. Mentari Services, melalui syarikat induk Kelowna Flightcraft menawarkan helikopter buatan Rusia Mi-172 KF pada harga RM898 juta, manakala syarikat pembuat Nuri, Sikorsky dari Amerika Syarikat, menawarkan helikopter alaf baru S-92 pada harga RM1.452 bilion.

“Persoalan yang berbangkit adalah, syarikat Eurocopter adalah pembida tertinggi, berbanding pembida Rusia yang menawarkan RM1.4 bilion jauh lebih murah. Mungkin ini adalah dasar kerajaan memilih pembida paling tinggi, supaya komisyen yang mereka dapat pun tinggi.”

Sepanjang Dewan Rakyat bersidang, Menteri Kewangan Najib Razak dan Menteri Pertahanan Abdullah Ahmad Badawi serta timbalan mereka tidak hadir dalam sesi tersebut, lantas menggagalkan sebarang usaha menuntut penjelasan dari mereka.

Namun skandal kali ini tidak terhenti setakat itu. Cara pemilihan helikopter dibuat amat mencurigakan. Pengerusi Mentari Services, Kapten (B) Zahar Hashim, mempersoalkan kebijaksanaan Menteri Pertahanan dan Menteri Kewangan meluluskan perolehan Eurocopter tanpa melalui fasa percubaan sepenuhnya.

Dalam hal ini, kerajaan dilaporkan tergesa-gesa meluluskan tender Eurocopter walhal ujian penilaian ke atas keempat-empat helikopter belum selesai dijalankan. Bahkan, kerajaan enggan melakukan ujian penerbangan ke atas helikopter Kelowna dan Sikorsky.

Menurut Kapten (B) Zahar, Kelowna sudi menyediakan sebuah helikopter Mi-172KF secara percuma untuk tempoh ujian enam bulan namun kesudian itu ditolak kerajaan. Manakala wakil Sikorsky langsung tidak dihubungi sama-sekali.

“Belum pun proses penilaian selesai dijalankan dengan tiba-tiba arahan diberi pihak tertentu supaya Letter of Intent (LOI) dikeluarkan kepada Eurocopter. LOI ini ditandatangani seorang pegawai menengah di Kementerian Pertahanan pada 15 September 2008, iaitu dua hari sebelum Najib Tun Razak berpindah ke Kementerian Kewangan,”

Dua unit Mi-17 telah dibeli dan digunakan oleh Bomba Malaysia yang dilaporkan amat berpuas hati dengan prestasi helikopter itu. Helikopter buatan Rusia itu digunakan secara meluas dalam konflik peperangan di merata dunia, dan ketahanannya terkenal di kalangan komuniti ketenteraan. Sebanyak 12,000 unit Mi-17 telah dijual dan digunakan di 60 buah negara.

Manakala S-92 buatan Amerika Syarikat pula antara yang terbaik dan termaju dalam kelasnya, menjadi pilihan negara-negara Barat khususnya Kanada, Amerika Syarikat dan United Kingdom serta negara-negara Timur Tengah.

Hanya Perancis, selaku pemilik saham terbesar dalam syarikat Eurocopter, yang mengendalikan Eurocopter EC 725.

Meneruskan ucapan beliau, Anwar menegaskan unsur-unsur mencurigakan dalam pembelian Eurocopter ini menjustifikasikan penyiasatan menyeluruh. Kerajaan telah bersikap sangat tidak profesional, sangat tidak telus, dan tidak memikirkan beban ekonomi yang ditanggung rakyat.

“Secara logik, adalah tidak munasabah Kementerian Pertaha- nan membuat keputusan membeli helikopter pada harga dua ratus juga ringgit tanpa menemui wakil penjualnya dan melakukan ujian penerbangan.”

Tambah beliau, sikap tergesa-gesa Menteri Kewangan dan Menteri Pertahanan sememangnya luar biasa. Di saat negara diancam kemelesetan, sikap tidak bertanggungjawab Menteri Pertahanan dan Menteri Kewangan dalam perolehan aset tentera amat dikesalkan.

“Soalnya, apakah negara kita boleh terus menelan dan menerima kecurangan-kecurangan sedemikian yang cukup mengaibkan?”
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From TheStar

Eurocopter chosen to replace Nuri
By LISA GOH

KUALA LUMPUR: The Defence Ministry is currently undergoing negotiations with Eurocopter Malaysia Sdn Bhd for its RMAF’s Nuri replacement programme.

Defence Minister Datuk Seri Abdullah Ahmad Badawi said that the Ministry had already sent Eurocopter a Letter of Intent (LOI).

“We have sent them an LOI, and we are in negotiations regarding the details.

“The Cabinet suggested new helicopters as the Nuri is already old, and has been involved in accidents, and there have also been deaths,” he told the press Friday after a briefing by officials on his first day at the Defence Ministry.

Abdullah, who is also the Prime Minister, and his deputy Datuk Seri Najib Tun Razak swapped posts last week, with Najib now helming the Finance Ministry.

Asked why Eurocopter was selected, Abdullah said that the Ministry would have “considered all the necessary specifications in the helicopters” before making a decision, but declined to elaborate.

On another matter, he also said that the Defence Ministry was ready to implement the Industrialised Building System (IBS) for the Ministry’s development housing projects.

“If IBS is used, there will be savings and the houses can be built faster and with guaranteed quality. It’s a very advantageous system,” he said.

Abdullah added that there were about 12 old camps currently which needed to be repaired or rebuilt in the Klang Valley and in Ipoh.


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