No commission paid: Najib

‘SCORPENE AND SUKHOI PURCHASES MADE ACCORDING TO PROCEDURES’

by Tim Leonard

KUALA LUMPUR: No commission was paid by the government to any party for the purchase of the RM4.5 billion Scorpene submarines and the RM3.2 billion Sukhoi jets, Deputy Prime Minister Datuk Seri Najib Abdul Razak said yesterday.

Najib, who is also the defence minister, said allegations of corruption and cronyism were baseless as all these transactions were made in keeping with proper procurement procedures.

He was responding to calls by Opposition Leader Datin Seri Dr Wan Azizah Wan Ismail in the Dewan Rakyat on Monday to the prime minister to set up an independent commission to probe these purchases for which, she claimed, large amounts of commission were paid.

Speaking to reporters after presenting excellent service awards to Defence Ministry personnel in conjunction with Workers Day, Najib advised those who make such allegations to check their facts first.

The Defence Ministry also issued a statement that allegations that the ministry had paid RM540 million to Abdul Razak Baginda (an accused in the Altantuya Shaariibuu murder trial) as commission to secure the Scorpene deal were without basis.

It said a local company, Perimekar Sdn Bhd, was awarded a contract worth 114.96 million euros to provide support and coordination services for a period of six years. This was the amount that was misconstrued as “commissions”.

The company’s job scope included preparing accommodation facilities for 27 families and 156 submarine crew in France and Spain, preparing offices and health insurance policies for staff and crew, paying daily allowances of 50-60 euros a person and buying return flight tickets for the crew three times a year.

Perimekar is a joint venture company among Lembaga Tabung Angkatan Tentera, Boustead Holdings Bhd and KS Ombak Laut Sdn Bhd.

The ministry also clarified that the purchase of Sukhoi SU30MKM fighter jets was made through direct negotiations with Russian company Rosoboronexport and the Russians had engaged a Malaysian company to facilitate their business transactions here at their own prerogative.

“But the ministry is not involved and has no interest whatsoever in any company appointed by the Russians,” the statement read.

Asked about DAP chairman Karpal Singh’s recent comments on the Sultan of Perak that some quarters deemed seditious, Najib said it is up to the Attorney-General’s Chambers to decide if they want to press charges against him.

“His comments were seen as seditious and challenging the constitutional right of the Ruler, but it depends entirely on the A-G’s chambers to decide what to do next,” said Najib.

Karpal had recently claimed that the Sultan of Perak had no jurisdiction over the transfer of Datuk Jamry Sury from the Perak Religious Department.

Perak Umno Youth lodged a police report against him on Monday.

In Sungai Buloh, Umno vicepresident Tan Sri Muhyiddin Yassin said Karpal’s statement was an act of “rudeness”.

He said questioning the action of the Ruler openly was not the Malaysian custom and that the MP for Gelugor should have expressed his dissatisfaction in a more “courteous” and “polite” manner.

“We in the BN (Barisan Nasional) government had never expressed our views on such matters and if we have any (dissatisfaction), we will seek an audience and convey our views politely. So this (action by Karpal) lacks finesse,” Muhyiddin, who is also the international trade and industry minister, said at a press conference after visiting a furniture factory.

“We must respect (the monarchy). It’s not that we want to fight with anyone. Sometimes he (Karpal) thinks that after being in Parliament for 26 years, he knows everything, so there is no need to give respect to others, especially the Rulers.”

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Sukhoi and Scorpene deals ‘properly made’

Source: The Star

KUALA LUMPUR: The purchase of Sukhoi jets and Scorpene submarines was done according to proper Government procurement procedures, said Datuk Seri Najib Tun Razak.

Perimeker Sdn Bhd, which is said to have received a commission for the deals, is a joint venture between Lembaga Tabung Angkatan Tentera, Boustead Holdings Bhd and K S Ombak Laut Sdn Bhd.

“I have already made statements previously. The purchase of the submarines was not something that was done without following acquisition procedures.

“The accounts of the joint venture companies were audited and people can look at it,” he told reporters after the Workers Day celebrations at the Defence Ministry level yesterday.

Najib said this when asked to comment on Opposition Leader Datin Seri Wan Azizah Wan Ismail call in Parliament on Monday for the Government to set up an independent commission of inquiry into the purchase of Scorpene submarines and Sukhoi jets.

She said the purchase of the two Scorpene submarines worth RM4.5bil through negotiated tender had attracted attention as a commission exceeding RM540mil had been paid to Perimeker Sdn Bhd, which she claimed was owned by Abdul Razak Baginda who was an adviser to Najib.

Wan Azizah also alleged that for the purchase of the Sukhoi jets worth RM3.2bil, IMT Defence Sdn Bhd, a company controlled by former Malacca chief minister Datuk Adib Adam, was paid a RM380mil commission.

Najib said in the case of the Sukhoi jets, the Russian Government had the right to appoint the agent.

“Don’t make wild allegations. You must focus on facts,” he said.

Asked to comment on a media report that the Anti-Corruption Agency was probing Padiberas Nasional Bhd and the Agriculture and Agro-based Industry Ministry regarding the import of rice, Najib said: “I’m not sure about the truth of the report. It is up to the ministry to look into it.”

On whether there was any mismanagement in Bernas over the creation of a stockpile, Najib said: “Bernas is a public listed company. Creating a stockpile would be beyond its means.

“That is why the Government announced two days ago about the approval of RM2.5bil for the food security programme. Part of the money will be used to purchase rice under the stockpile scheme.”