October 8, 2012
Carma Auditor-General: Scorpene Deal according to legal procedures
by Bernama (10-06-12)
Defence Minister Dr. Ahmad Zahid Hamidi said the Auditor-General (right) 
has already explained that the purchase of Scorpene submarines was made according to legal procedures and his official report must be accepted by all quarters.
In response to the opposition’s plan to bring in a French lawyer, William Bourdon, to brief the Malaysian lawmakers on court proceedings in France on the purchase of the submarines, Ahmad Zahid hoped no quarters would twist the existing facts on the matter.
He was also of the opinion that the lawyer was invited to Malaysia by the opposition merely with political motive and not so much for legal business.
Ahmad Zahid said this to reporters after opening the Sekolah Agama Rakyat Al-Ulum Al Tarbiah’s Sports Day in Kampung Tanah Lalang here today.
The purchase of the submarines should be seen from the aspects of an offset programme, training, and performance assurance for certain period of time, he said, adding that it was really an old issue brought up to create public anger and confusion.
On the request for the government to pay a monthly allowance of RM500 to army veteran who served during the emergency era, Ahmad Zahid said it was up to the Prime Minister to decide according to the government’s financial ability.
“It is quite difficult for the government to meet the request, but we have to be grateful that during the tabling of Budget 2013 the government had announced the one-off payment of RM1,000 for the army veterans as a token of appreciation for their contribution during the emergency era,” he added.
- Bernama
Yes, I read that this Auditor-General–a Ahmad Noordin wannabe– will be retiring soon and will have to cari makan again. Maybe he has been promised another assignment and some directorships if he plays ball (not to confused with balls). Let us wait and see. We will know when the time comes.
This rotten system can only be fixed if there is a change of government and a major shake-up of the civil service. The present KSN, Dr Hamsa Ali, a crony of the infamous Noh Mohamed Yakcop, must be replaced as well.
The auditor general is commenting on existing procedure and was it followed. There would be comments on samudra laut and other razak baginda assosited and service providers. I am sure they followed process or a semblence of it , question that really need asking 1) why did the razak baginda bring to this deal 2) why , what i so special it cost us500 million 2) how is sirul , azila and altantuya connected 3) how was the c4 taken to for the murder execution 4) many other questions, based on the answers fo 1 to 3 must be obtained. Many things can be hidden beneath an audit and statements of fair and true view of the accounts – its bollocks as they say here…
Dato’ why don’t we go back to the Parliment Hansard 2011. The exchanges between Deputy Minister of Defence and YB Nurul. http://malaysiansmustknowthetruth.blogspot.com/2011/11/scorpenesl-corruption-is-corruption.html
The Barisan Nasional is not a stupid government. After 50 over years in government, it is fair to say that it is very experienced in playing with terms and words especially in formulating paper-work that supports its less than transparent activities.
The government has insisted that it did not pay any commissions to company Perimekar Sdn Bhd, which acted as a go-between for the purchase of the Scorpene submarines from French arms giant DCN. Deputy Defence Minister Abdul Latiff Ahmad himself said on Wednesday that finding any documentary evidence of such would mean the government is “stupid”.
“You think the government would write down that it paid commission to Perimekar? That means the government of Malaysia is stupid! Why don’t you use your brain?” Abdul Latiff, the MP for Mersing, said.
Arrogance and the writing on the wall
These brash and arrogant words were said to Lembah Pantai MP Nurul Izzah Anwar during the winding-up of the debate on the Supply Bill 2012. Pushed again if the government could confirm that it had never paid a single sen in commission to Perimekar, Abdul Latiff emoted: “Benar, benar, benar dan benar!” (True, true, true and true!)
Words that are bound to return to haunt him if he lasts in Malaysia’s fast changing political scene, but given his performance and lack of polish so far, he seems headed for the has-beens heap
Yes, indeed, as Abdul Latiff had unwittingly albeit rudely pointed out, it is a case of ’Catch us if you can. Certainly, we won’t be so stupid as to print it out in black and white for you to use against us. Find your own proof. In the meantime, as far as we are concerned, we have never paid a sen in commission!
Corruption is corruption, whatever you call it
Shocking? But sad it may be, this is the depth that BN has sunk to. They seen to have lost all their orientation and moral bearings, grasping and grabbing at straws to stay politically alive.
No, Perimekar – an obscure firm linked to Najib’s close friend Abdul Razak Baginda – was not paid commission but was instead paid 114.96 million euro (approximately RM574.8 million) for “coordination and support services” for helping the Malaysian government seal the RM7 billion Scorpene submarines deal.
In the wording of their agreement, the money paid out was not a commission. Yet, to all intents and purposes it was a commission – whether the Najib administration cares to admit it or not.
Permekar brokered the deal for the submarine purchase and for that, it was awarded a contract to provide coordination and support services, when they had no experience in the given field. What guarantee do the Malaysian public have that Perimekar did not negotiate to be paid RM574.8 million for their part in securing the deal?
The use of the term “coordination and support services” as opposed to “commission” is little more than smart accounting. Something the current BN government is very good at, it is apparent. This can be seen in the NFC scandal, its justification in the purchase of 2 super-luxury condos, another ministry’s purchase of overpriced binoculars and in the government’s bloated spending bill.
Source of the money hidden by fancy accounting?
Whatever it is, Abdul Latiff’s reply in Parliament at the very least confirms that RM574.8 million was paid out to Perimekar and call it what you may; that money was paid out. The source of the money still remains somewhat of a mystery. Did the money come from the people’s coffers or was it channelled from outside funds paid to the government?
You see, if the source was public money, then the Malaysian public should know how was the money spent in supporting the two submarines which now lie off the coast of Sabah.
If the money came from outside sources, for example the government was merely a conduit for DCN, i.e. in the form of a ‘commission’ paid by DCN, then government must clarify and state it to be so. But of course, it won’t and this is what Abdul Latiff is resisting with all his might.
It must also be noted that DCN has a track history of using government conduits to channel money to facilitate its business – this was evident in the DCN-Pakistan scandal.
But no matter what, a sum of money was inappropriately expended and for a most immoral purpose – which was to close the Malaysian purchase of the two subs from DCN. Who paid out the money and how the paper trail has been worked out is the next issue and this is what Abdul Latiff and the BN are determined to keep hidden to themselves.
The Attorney General is legally right & there lies the difficulties in Malaysia. We want to know the truths . . . . . we want to have a discussion . . . . . we want to have divergent views . . . . . etc, etc, . . . .we want to be trated as real citizens witha right to know . . . . .
The Auditor General has now joined the ranks of Civil Servants who do not know the market prices of goods and services purchesd oh behalf of the Government. PEMANDU please do something, anything about this state of affires.
Look, the Auditor G is just a glorified accountant. He works with figures he’s presented with. He can question but doesn’t have the tools to go further. Forensic accounting is onerous task from what people tell me. The suspicion and skepticism there, but unless they can get past the smoke screen and creative accounting that all goons do, they are stymied. The report is addressed and filed to the DYMM, and queries must come from that level – i.e the PM and Finance Minister (over here, the CEO and CFO rolled into One flaccid spring-roll) – not a useless adjunct like Pemandu – which only has baby talk and perhaps two milk-teeth.
The onus then lies on the Attorney General to investigate with PDRM’s most vaunted Commercial Crime and MACC. Obviously, this procedure will be followed to the Strictest of manner. No use slamming the reporter, when the whole blinking editorial board is made of Carma Censors and the Perpetrators themselves.
A theft was committed in a supermarket and the crowd witnessed the ensuing commotion. But no one makes a police report. No case to be made. This appears to be a Malaysian justice system.
Onward to Scorpene submarines. A grossly inflated purchase price was paid and money trail to Perimekar was detected. Wholesale denial and spin followed. But the Paris court decided there is a case to be made against the manufacturer DCN. The proceeding is yet to begin.
Now the Auditor-General is purportedly enlisted to reiterate no irregularities were committed in this purchase which was not through open bidding in the first place. And the Defence minister expect people to accept this as fact?
Come on Zahid, give me a break ! We will wait for the findings of the Paris court.
The Accountant General is a Constitutional Office Holder. If he can give an ‘All Clean Statement’ for one purchase the he can also give an’ All Unclean Statement’ for another purchase. The powers are vested in him and he must use it. In normal times, yes, “he does not have the tools to go further”. But these are not normal time and he must go ‘ beyond the call of duty’. The higher loyalty is always to the State. Otherwise, it is like saying that the system is weak and, therefore, we just have to suffer in silence.
“The use of the term “coordination and support services” as opposed to “commission” is little more than smart accounting”
Not window dressing. Not a case of creative accounting. None of those. Hiding, for example, huge losses behind ‘contingencies’ only begs the question as to the nature of those contingencies.. Similarly, what sort of “cordination and support services” were rendered by Perimeker that came to be valued at such an astronomical figure as 114.96 million Euros? It wouldn’t pass the smell test of a first year A level accounting student. It would never pass the screw and bolt analysis of YB Bendover Singh, the member from Batang Berjuntai.
“You think the government would write down that it paid commission to Perimekar? That means the government of Malaysia is stupid! Why don’t you use your brain?” Abdul Latiff, the MP for Mersing, said
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What are we not surprised to be told that this smart ass MP for Mersing expects to see “brothel” in flashing neon lights when he walks into a health center?
ooops … why are we not surprised
It has been the modus operandi of the Malaysian government even before this smart ass MP for Mersing learned to read and write that an intermediary company connected to UMNO formed for this specific purpose, has been used in all transactions for the purchase of military hardware. It is a fraud perpetrated on taxpayers (the real shareholders) and there is nothing that a judge employing a procedure known as piercing the corporate veil cannot expose to public scrutiny. It will take us behind the corporate veil and expose the identities of the players and the money trail generated by the various transactions. It is as simple as that.
What sort of ‘support and coordination services’ did Razak Baginda peform? Did he get on his hands and knees to do it?
Yes Bean, you hit the nail on the head.
Tell me, what does the Auditor G know about the cost of Submarines and maintainence thereof? He has no terms of reference. Therefore, his statement is not at odds with his ignorance. He can’t even comment on the ‘support and coordination’ services. It is for the ‘interested’ parties to cry “Lupus’”, i.e Wolf!
Unfortunately, what we have are not just general weaknesses in the system, but also an Establishment filled with ravening wolves. What i’m saying is that we place too much emphasis on One flur, while the whole rotten edifice stinks.
Let the international auditing firm to audit the accounts of the scorpene purchases and all of us will expect the worms oozing out from the accounts.
There’s 2 parts in auditing, auditing the accounts and auditing the process and procedures. The Scorpene deal was made according to legal procedures. Now lets see whether everything was accounted properly.
This Zahid fella loves to wear army fatiques. He’s always see in a camouflage uniform with a Gerak Khas (Special Forces) lanyard and green beret. You don’t wear one unless you are a trained commando but to idiots like Zahid traditions, which we old diggers hold dear to, mean little. Being the defence minister everything is fair game to him. This is Bolehland for you.
If demanding $1 billion from the vendor to start negotiations for the purchase of the submarine and paying $500 million as commission to a third party who knows nothing about submarines is according to established legal procedures, then God help us all.
Ever wonder how much more have been squandered under this ‘legal procedure’ in the purchase of past defence equipment?
Even HRH from a southern state commented on the very exhorbitent price paid for the recent purchase of certain military vehicles (RM650,000 each??). We must get rid of corruption.
No wonder they are always shooting at their own foot. No shame ka?
The people heading all our institutions are rotten to its core. With due respect, they will sell their mother if needed.
The suspicion and allegations on the submarine purchase may never end no matter how hard and how long the government tries to explain it. The best way perhaps is for the government to make a special, one-off exception, in view of the OSA, to declassify & make the contract documents publicly available. To safeguard the submarine data, for security reasons, the technical specifications can be ommitted and to avoid any legal complications, the consent of the contracting parties should be obtained for the documents to be so released to the public.