KUALA LUMPUR: The government signed eight contracts, three MOU and six offset agreements as well 10 Letter of Awards and three Letters of Intents worth some RM18.3 billion for the Armed Forces and Home Ministry agencies at DSA 2018 today. Some RM14.396 billion are for the six offset agreements related to the LCS and AV8 Gempita programs.
I don’t have the cost of the rest as the defence and home ministries did not release a breakdown of costs of the contracts, LOI, LOA and agreements awarded or signed today,
Only two companies have so far revealed the cost of their contracts, Deftech Aviation Sdn Bhd (RM18 million for a three year MRO contract for police Cessna aircraft) and Kongsberg Defence (RM597 million) for the Naval Strike Missile (NSM) for the RMN’s Littoral Combat Ships.
From my guesstimation, the actual costs of the contracts for the Defence Ministry only amounted to around RM3 billion, Most of these are MRO and spares and support for all three services. The ministry also awarded the contract for the EDA M109 A5 howitzers to the US Embassy in Kuala Lumpur, no further details, cost and numbers, were revealed.
Several contracts scheduled for today were left out without any explaination. This includes the contract for the purchase of Nexter 105 LG1 howitzers. ADS Sdn Bhd officials who were at the ceremony were left speechless with the turn of events. Also left out at the ceremony were contracts for Air Asia and Malaysia Airlines to provide transportation for soldiers to and from the peninsula to Sabah and Sarawak. Their representatives who were present at the ceremony were also not given any explaination on why the contracts were not awarded today.
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