SHAH ALAM: Going, going..gone part 2. It appears that the deal for six MD Helicopters MD530G light scout attack helicopters is likely to be cancelled. Defence Minister Mohamed Sabu told the Parliament today that “the government probably need to go to court over the six helicopter deal made by the previous administration, worth RM300 million, which had not been received until today.”.
This is the first official confirmation that the deal had gone sour. As I had reported before the ministry had not want to confirm that the deal was likely to be canceled.
It must be noted that past legal challenges against the government for cancelling contracts have usually been in the favour of the defendant. I have no idea why the ministry in this instance felt so defensive over its decision apart from the money already paid for the helicopters, reportedly some RM112 million. If it felt aggrieved over the payment it could always get the courts to compel the company which received the payment to pay it back. It is my assumption that the ministry’s in this regard deemed it’s case as weak and it is likely it will be unable to get the repayment order hence it’s tepid steps in regards to finally cancelling the order.
Although the Defence Minister continue to say that the helicopters have not been delivered yet, the real reason for the cancelling the deal is the fact that the Army does not want it anymore. And although the ministry had to try to pass on the helicopters to others including other government agencies, it appears no one wants a single pilot light scout attack helicopter.
Please read previous reports by Malaysian Defence on the issue for context. First story Story.
DSA contract signing.
As for the M109 SPH, again it was the Army that decided that these vehicles – ex-US Army stocks are long in the teeth – are superfluous to its needs.
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