Firms dealing with firearms do not have to depend on government contracts for business, according to an industry source.

He said these firms also cater for a specific clientele who procure firearms, especially for purposes of protection.

"There are certain requirements that must be met before a person is authorised to own a firearm with licence. The applicants are screened," he told Malaysakini.

"It is a very stringent process, with a long checklist. The licences are obtained from the respective district police headquarters," he added.

Furthermore, he said in the cases of businessmen, members of royalty or those in positions of power, the individuals often purchase more than one firearm for the use of their security personnel.

The firearms firms, he added, also perform servicing of weapons, repair works and source replacement parts in cases of defects for a substantial fee as it is a specialised trade.

The source, who declined to be named, was commenting on the controversy surrounding the firearms company owned by inspector-general of police Khalid Abu Bakar's daughter.

Khalid (photo) has said the firm obtained its business licence even before he was appointed as police chief.

The IGP also added that he forbade the firm from bidding for government or police contracts.

Khalid also welcomed an investigation into the matter to determine if there was a conflict of interest as alleged by certain quarters.

The issue was first exposed by whistleblower website Sarawak Report last week.

Speaking at a forum last night, PKR leader Latheefa Koya asked who the police chief’s daughter was selling firearms to, if not the government, police or military.

Meanwhile, another source, who is familiar with the firm in question, denied the claim that the company operated a lucrative business.

The source said the company’s accounts are testimony to this.

"If one looks at the accounts for the previous two years, it can be seen that the company is not doing well," the source added.

Contacted later, Khalid declined to comment on Latheefa's comments.

"I do not wish to speak further on this matter. As I said before, my comments can affect the investigation. Let the probe determine if there was any wrongdoing.

"The opposition is also welcome to check this issue through their network," Khalid said.