Tuesday, May 6, 2008

Jets, subs purchased according to procedure: DPM - The Star

KUALA LUMPUR: May 6, 2007 By IZATUN SHARI

The purchase of Sukhoi jets and Scorpene submarines were made based on proper Government procurement procedures, Datuk Seri Najib Tun Razak said.

The Deputy Prime Minister said the procedures were checked by the central agency before the signing of the contract.

"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 Tuesday after the Workers Day celebrations at the Defence Ministry level here.

Perimeker Sdn Bhd, which was said to have received the commission, is a joint venture between Lembaga Tabung Angkatan Tentera (LTAT), Boustead Holdings Bhd and KS Ombak Laut Sdn Bhd.

"Don't make wild allegations. You must focus on actual facts," he said when asked to comment on Opposition Leader Datin Seri Wan Azizah Wan Ismail calling for the Government to set up an independent commission of inquiry into the purchase of Scorpene submarines and Sukhoi jets.

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

She said in 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 Sukhoi, the Russian Government had the right to appoint the agent.

In his earlier statement, Najib had said that the allegations that commission was paid to Razak Baginda were baseless.

He explained hat there was no commission paid to Perimeker as alleged by the opposition because it was done through direct negotiation in line with the Government acquisition procedures.

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