Navy deal: Who destroyed the records?
The Anti-Corruption Agency (ACA) has been told to investigate a "shocking revelation" that certain records into the RM6.75 billion navy deal to purchase six offshore patrol vessels have been destroyed.
The Anti-Corruption Agency (ACA) has been told to investigate a "shocking revelation" that certain records into the RM6.75 billion navy deal to purchase six offshore patrol vessels have been destroyed.
The call was made in a report by DAP secretary-general Lim Guan Eng to the Federal Territory ACA office in Kuala Lumpur yesterday.
"There is greater urgency in discovering the truth of this scandal following the shocking revelation by Public Accounts Committee (PAC) chair Shahrir Abdul Samad in a
Malaysiakini
report on Sept 26," Lim said in his report.
In a three-part interview with Shahrir published since Tuesday, the Umno politician disclosed that the powerful parliamentary committee has not be able to get hold of sufficient company records pertaining to the deal. He claimed they have been "destroyed".
He said the records destroyed involved the first two problem-ridden vessels, delivered to the Royal Malaysian Navy last year after a two-year delay. The remaining four are under construction.
The PAC started to investigate the scandal in 2005. The deal also came under criticisms in the latest Auditor-General's report for approving an additional RM1.4 billion to complete the four vessels with "no justification".
The lucrative contract was awarded to PSC-Naval Dockyard Sdn Bhd - a subsidiary of PSC Industries Bhd owned by Umno associate Amin Shah Omar Shah - in 1998.
The company was renamed Boustead Naval Shipyard Sdn Bhd in August last year.
Six areas to focus
In his report, Lim told the ACA to focus on six prime investigative areas in the scandal:
1 Why were there no open tender and instead the contract was awarded direct to PSC-Naval Dockyard in 1998?
2 What is the justification for increasing the contract value by 38 percent to RM6.75 billion when the contractor had already failed to perform?
3 Why did the government waive claims of at least RM214 million in late penalties for the late delivery of the first two vessels and the non-delivery of the remaining four?
4 Why no action was taken against the contract for sub-standard work on the first two vessels delivered last year which failed to fulfill technical specifications - with 483 incomplete works and items and 298 complaints over the operations of the vessels - risking the lives and safety of our sailors?
5 Why did the Defence Ministry pay in advance RM4.26 billion to the contractor even though progress of work done only amounts to RM2.87 billion?
6 Who ordered the destruction of the documents as announced by Shahrir?
"It would be unfortunate if those who expose corruption are persecuted and punished whereas those who commit such wrongdoings can prosper and flourish," added Lim in the report.
On Sept 12, Lim submitted a memorandum to Deputy Prime Minister Najib Abdul Razak, who is also defence minister, calling for investigation into the scandal but the opposition party leader has yet to receive any response.


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