SHAH ALAM: Report lodged on MD530G deal. Bernama, the national news agency today reported that the Defence Ministry has lodged a report with the Malaysian Anti Corruption Agency (MAAC) regarding the MD530G deal for the Army.
The Bernama report
PUTRAJAYA, June 13 (Bernama) — The Defence Ministry today lodged a report with the Malaysian Anti-Corruption Commission (MACC) over the purchase of six helicopters worth more than RM300 million in 2015, which has yet to be received by the Malaysian Armed Forces to date.
The report was filed by the ministry’s representative at the MACC Headquarters, here.
According to the ministry’s source, the McDonnell Douglas MD530G lightweight combat helicopters were supposed to be received in two phases, namely two in July 2017, and the rest in December 2018.
The source said the terms of the purchase agreement did not safeguard the interests of the government, which included clauses such as ‘the contract is valid for two years, or, until the local company appointed as the agent successfully delivers the helicopters.’
According to the source, the approval for the purchase of the military assets in November 2015 was also not done according to set procedures.
“The contract was done via direct negotiation with the agency, while many terms of the contract were not favourable to the government, for example, the contract was approved without any military specifications, a mandatory requirement in the purchase of military assets,” the source said.
He said McDonnell Douglas had also cancelled the local company’s contract as its agent in Malaysia by the time the helicopter purchase agreement was signed.
The source added the Malaysian government had already paid RM112.65 million, which was 35 per cent of the total cost of the acquisition, to the company.
I am not sure whether the report lodged with MACC stated that the deal was with McDonnell Douglas or the reporter – as with other MSM reporters – had confused MD Helicopters with the former aerospace company.
Anyhow I am putting this on the record only as a freelancer I am not able to get any official confirmation over the report with the MACC or any updates. We will have to wait and see whether the report will led to charges being filed in court.
You can check the Malaysian Defence archives for more information on the MD530G deal. Before anyone asks, I have been told that the first batch of MD530Gs for the Army are expected to be delivered by the third quarter of this year.
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