Sunday, September 30, 2007

Alleged Irregularities In Vessel Purchase - DAP Lodges Report With ACA. An Exercise In Futility?

A report has been lodged with the Federal Territory Anti-Corruption Agency over alleged irregularities in the purchase of six Offshore Patrol Vessels (OPV). DAP secretary-general Lim Guan Eng, who lodged the report, wants the ACA to look into what he claimed were six questionable areas surrounding the RM6.75 billion purchase by the government.

The six areas are:

* Why there was no open tender and instead the contract was awarded to PSC-Naval Dockyard Sdn Bhd;

* What is the justification for increasing the contract value by 38 per cent, or RM1.85 billion, to RM6.75 billion when the contract had already failed to fulfil requirements;

* Why the government had waived claims of at least RM214 million in penalties for the late delivery of the two OPVs and non delivery of the remaining four OPVs;

* Why no action was taken on the contractor for sub-standard work on the two OPVs which failed to fulfil technical specifications;

* Why the Defence Ministry had paid RM4.26 billion in advance to the contractor although the work done had only amounted to RM2.87 billion. The advance payment is RM1.4 billion more than what the contractor was entitled to claim; and

* Who ordered the destruction of some documents which became public knowledge after Public Accounts Committee (PAC) chairman Datuk Shahrir Samad announced it two days ago.

Lim said the 2006 Auditor-General’s report had provided all the necessary materials which could assist the ACA in its probe.

“It would be unfortunate if those that expose corruption are persecuted and punished whereas those who commit such wrongdoing can prosper and flourish,” he said. (NST)

***** Excellent questions by Lim Guan Eng. But the chances of any good coming out of this report to the ACA is less than zero. Everyone knows who the main culprit is. So does the ACA. But they don't have the balls to go after this dirty ikan yu. The most that will happen is they will summon Lim Guan Eng to inquire where he got his evidence from. If the evidence is overwhelming and genuine, then they'll charge him under the Official Secrets Act and try to to get him disqualified from standing in the next elections. Semuanya will still be OK!
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Anonymous Anonymous said...

Sometimes we make light of issues like these but isn't it what is wrong with our country?

1:14 AM GMT+8  
Blogger kittykat46 said...

PSC-Naval Dockyard's political connections via Amin Shah are well known.

The root problem of this sorry disaster was their failure to deliver the Offshore Patrol vessels on time and meeting contracted performance. specifications.
The Kedah-class OPVs were designed with advanced electronics and weapons systems. PSC Naval Dockyard had never built a ship of this size and complexity before.

In the end only 2 of the 6 vessels ordered have been delivered, after a 18 month delay and their performance is unsatisfactory.

I was quite surprised that PSC's German project partner, Blohm & Voss couldn't manage the project adequately. B&V is a very established and respected Naval builder in Europe.

The rest of the story is a predictable outcome - the company ran out of cash to pay its suppliers, workers and contractors. It is unable to complete the remainding 4 ships.

There were also allegations it failed to remit deductions already made from employee salaries for EPF &Income Tax.

As usual in Bolehland, nobody will take responsibility, nobody is going to be fired or disciplined, nobody will be going to jail.

PSC will in all likelihood still be awarded future Government contracts.

Everything is OK, Malaysia-Boleh !

12:24 PM GMT+8  
Anonymous Anonymous said...

Malaysia Boleh!

4:05 PM GMT+8  

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