|Monday, 18 July 2011 16:12|
Not long ago, a huge procurement contract for the purchase of military tanks (Armored Fighting Vehicles) was given to DRB Hicom for almost RM9 billion. It is not that DRB Hicom has the knowledge or expertise on how to build such vehicles, but that is not a problem in this country if you are close to those in power.
I have been told that there is a markup of about RM700 million from that exercise. In other words, that’s the additional cost the tax payers will have to unnecessarily pay for these equipments. The Minister of Defence will of course not divulge details of such a contract, as these details will be conveniently categorized as official secrets. Besides the financial issue, we have reason to believe that for the actual technology purchased, it is not money well spent. It is probably some old technology from Turkey.
Now we have a new blockbuster: it's called the Patrol Vessels contract. The infamous French company, DCNS, the same company that supplied us those famous Scorpene submarines (under the contract which some parties made RM500 million, of which coincided with Altantuya's tragic death) is here again to partner up with Boustead Naval Shipyard Sdn Bhd ("BNS") to build these patrol vessels.