KUALA LUMPUR, Feb 8: A storm is brewing over the government’s plan to spend some RM6 billion to build six new offshore patrol vessels (OPVs), with many questioning the rational of spending such an amount of money for something worth much less in the market.
Urging the government to explain the use of public money to acquire the offshore patrol vessels, Klang member of parliament Charles Santiago (right) said the figures revealed that the same type of vessels costs much less.
"This is relatively more expensive than South Korea’s much larger and newer frigates which were recently contracted to Hyundai Heavy Industries at US$300 million each,” he said in a statement echoing his colleague, Tony Pua.
Pua had earlier questioned the need for such a purchase at a time the government was cutting back on subsidies of essential goods citing insufficient funds.
Drawing attention on the RM2 billion allocation to 632 vendor companies which are strategic partners of Boustead Naval Shipyard, the main beneficiary of the plan, Charles said the figure was inconsistent with what was given by prime minister Najib Razak, who had said that the new order was made because 2,000 companies depended on the additional work under the vendor development programme.
“When the plan was deferred two years ago the Malay Mail quoted Prime Minister Najib as saying that the new orders were required because 2,000 companies depended on the additional work under the vendor development programme.
"However, only 632 vendor companies have been identified by Defence Minister Ahmad Zahid Hamidi to benefit from the current plan. He added that at least RM2 billion of the allocation will be channelled to them,” explained Charles, adding that to date the government had yet to disclose any of the companies alleged to be involved.
“And, again, there has not been any indication that an open tender process was utilised for this project,” he stressed.
The purchase of the six new OPVs, part of a 1995 arrangement to have 27 new OPVs built by 2015, also raised questions on the government's desire to stockpile new weapons of war after having just acquired two new submarines from France, which was also shrouded in controversy amid a corruption investigation launched by French authorities.
Charles lashed out at the government's willingness to spend huge amount of money but refusal to help bring down food prices, saying that even South Korea "aims to be a blue water navy by 2020" at a time it was confronted with possible threat from North Korea.
Meanwhile, PKR senator Dr Syed Husin Ali said the government should just admit that the OPVs were bought at unreasonably expensive price.
“Is it for election funding? Or for leaders’ pocket?” he quipped, reflecting a growing debate on the Internet that more large contracts will be dished out to businesses close to UMNO leaders in order to fund Barisan Nasional's general election campaign this year.
Related:
Govt urged to come clean over RM6b for patrol ships
http://en.harakahdaily.net/index.php?option=com_content&view=article&id=2232:rm6b-vessels-contract-comes-under-fire&catid=34:primary&Itemid=56
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