Despite the issue being raised in parliament; despite resenting comments on the Internet, the defence ministry is still proceeding to renegotiate the award of the submarine rescue services to a favoured company whose core business is infrastructure works, building and quarry activities.
From reliable sources, the company is believed to be owned by a ‘Dato’ from Pahang. Upon further checking, the same company is believed to have been awarded several projects costing in excess of RM1 billion over the last decade by the defence ministry all through direct negotiations.
If one does not see this as being a blatant and hideous act of cronyism by the ministry's top officials, what other better words can be used to described the aforesaid act?
Now, this company is again being invited to renegotiate and propose to the defence ministry a new pricing from an initial quoted figure of RM98.4 million per year for a period of 20 years.
What a profitable deal this will be for the construction company if the deal were to go through unnoticed by the concerned public and taxpayers.
The company is said to have made a new proposal of RM60 million per year to the defence ministry. For those in the submarine rescue service industry, they claim that this figure is still unrealistic, and has been inflated by almost 100%.
A realistic figure would be RM30 million per year or thereabouts and there is already a reasonable commission factored into the figure.
How did this ‘Sdn Bhd’ derive a figure of RM98.4 million initially and later proposing a figure of RM60 million? It demands a full public explanation from both the ministry and the company.
Public perception of the defence ministry has never been good with regards to the award of contracts. Public resentment is cleverly being subdued from public knowledge.
The powers-that- be have ignored totally the practice of transparency, fairness and honesty in the award of contracts, and by so doing, they have betrayed the trust that is beholden upon them as loyal, faithful and honest public servants. Whims and fancies rule the day and the talk around the ministry is that 'the higher the cost, the better it is'!
To put this highly controversial deal in its correct perspective, it is incumbent upon the ministry's secretary-general to explain the rationale of insisting that this private company be awarded the contract by direct negotiation.
Apart from this, do also explain the basis of the ‘reasonable pricing’ as accepted by the ministry. An explanation given by the deputy defence minister or the minister himself isn't enough.
To deliberately ignore competitive bidding, the defence ministry and, in particular, the Royal Malaysian Navy, will not be able to get the desired scope of services at the best price.
RM60 million per year (and not for a period of 20 years) is certainly not a figure worth accepting at all.
