Second high-ranking officer indicted in Scorpene subs probe
Another high-ranking French official, allegedly active in corrupt activities, has been indicted over the Scorpene submarine investigation in Paris.
In a joint statement sighted by Malaysiakini, Suaram executive director Sevan Doraisamy and Centre to Combat Corruption and Cronyism (C4) executive director Cynthia Gabriel said Dominique Castellan is the officer indicted over the submarine probe.
Castellan is the former CEO of DCN International (DCNI), a mega shipbuilder.
His indictment was linked to Contract C5 between DCNI and Thint Asia in 2000, and the consultancy contract between Thint Asia and Terasasi Sdn Bhd, said the NGOs.
Another high-ranking French official, allegedly active in corrupt activities, has been indicted over the Scorpene submarine investigation in Paris.
In a joint statement sighted by Malaysiakini, Suaram executive director Sevan Doraisamy and Centre to Combat Corruption and Cronyism (C4) executive director Cynthia Gabriel said Dominique Castellan is the officer indicted over the submarine probe.
Castellan is the former CEO of DCN International (DCNI), a mega shipbuilder.
His indictment was linked to Contract C5 between DCNI and Thint Asia in 2000, and the consultancy contract between Thint Asia and Terasasi Sdn Bhd, said the NGOs.
The contract allegedly involved 30 million euro transferred to Terasasi Hong Kong in November 2002, the NGO activists noted.
This is allegedly in relation to Malaysia's purchase of two Scorpene-class submarines in 2002, when Prime Minister Najib Abdul Razak, who was then the deputy prime minister, also helmed the defence ministry.
The RM3.7 billion (1.035 billion euro) deal was inked on June 5, 2002, between Malaysia and DCNI.
“This will put the French probe into the spotlight again,” Sevan and Cynthia said in their statement.
They said the notification of the indictment was issued by examining magistrate Roger LeLoire on March 1.
They noted that Castellan had denied signing on to the 30 million euro contract with Terasasi on behalf of DCNI.
Political analyst
Abdul Razak Baginda (photo), a close ally of Najib, was allegedly the chief negotiator in the Scorpene submarine deal.
He was allegedly the beneficiary of Terasasi Hong Kong, in joint shareholding stakes with his father.
Razak Baginda had previously admitted to have received the 30 million euro but insisted it was a legitimate payment for consultancy work.
“The indictment of Castellan, now sheds new suspicion on this contract,” Sevan and Cynthia said.
On Dec 15 last year, Bernard Baiocco, former president of Thint Asia, became the first French official to be indicted for transnational active corruption and aiding in misappropriation of company assets issued by Le Loire.
Baiocco was accused of paying bribes to Razak Baginda, described as a foreign public official, despite France being bound by the 2000 OECD Convention.
Cynthia said a judicial complaint was filed in 2012, 10 years after the procurement of the two Scorpene submarines by Malaysia.
She had then represented Suaram when the judicial complaint was filed in Paris.
“These latest developments have confirmed long held fears that massive grand corruption had taken place.
“While the French probe continues with due diligence, we remain hopeful that the Malaysians involved will also be brought to book," Gabriel added.
MACC urged to reopen submarine probe
Suaram and C4 have urged the Malaysian Anti-Corruption Commission (MACC) to reopen the case on the Scornene submarines investigation.
“We urge attorney-general Mohamed Apandi Ali not to block anymore the Mutual Legal Assistance needed to complete the transnational probe and punish those involved in dragging down the good name of the two countries,” the activists said.
Meanwhile, Baiocco's lawyer, Jean-Yves Le Borgne, has accused the prosecutors of “legal acrobatics” in trying to claim the payments were used to bribe government officials.
However, in an article in the Financial Times in February, Le Borgne said his client had admitted the money was paid to Razak Baginda for lobbying works.
The lawyer reportedly confirmed that Najib and Razak Baginda were named in the judicial documents.
A Malaysian government spokesperson was quoted in the article as saying the allegations of wrongdoing against Najib in the Scorpene deal were "baseless smears for political gain".
The spokesperson stressed that Najib had not benefited from any payments from the deal, nor has Najib been contacted by French investigators.


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