By Shannon Teoh
KUALA LUMPUR, Oct 28 - The Eurocopter deal has been deferred until the economy improves, Prime Minister Datuk Seri Abdullah Badawi said today, confirming a Malaysian Insider report.
At a press conference at the Ministry of Defence, he said that this was to reallocate funds to projects which could benefit the people directly in the current financial crisis.
"At the moment we have decided not to purchase the helicopters so as to allocate funds for other projects. The savings are important due to the economy and financial crisis.
"Due to the financial crisis, we need money. We cannot just be borrowing every time we need money. The best thing to do now is reallocate our budget," Abdullah said.
He also revealed that the decision was made in an Economic Council exco meeting on Oct 13, which recommended that certain projects be shelved in favour of those that had a high "trickle-down multiplier effect" on the economy.
Clarifying that the deal is worth RM1.67 billion and not RM2.3 billion as reported, he said the Public Accounts Committee would continue its scrutiny of the deal.
Abdullah, however, said he believed there were no irregularities in the procurement procedure and that the scrutiny would be good.
"It will let us know what the procedures are and explain why the price is so high and comments with regards to the tender," he said, adding that the price was high due to the specifications involved.
By stating that the helicopters were capable of combat, search and rescue as well as troop lifting, Abdullah explained that the 12 Cougar EC725s cost more than those being acquired by Brazil because "they have been upgraded to that level. If it is only for transport, it will cost much less."
It had been revealed that Brazil were purchasing 50 Cougars at RM84 million each whereas Malaysia would be buying its units for RM139 million each.
Eventually, the Royal Malaysian Air Force would need to purchase new helicopters to replace its ageing fleet of 28 Nuris, Abdullah added.
"It does not mean we don't want to buy. The Nuri is old and has been involved in many fatal accidents.
"We have to buy new helicopters no later than 2011. If we can, we want to buy earlier," he said, explaining also that "it is not like buying a car" and would take a three-year period for the aircrafts to be delivered.
He, however, did not rule out a new tender process in the future.
"This is a matter for our officials to decide. Whether we want to do it is our decision," he said.
Abdullah added that various ministries have been instructed to reduce expenditure and this may cause some other projects to be shelved. -- TMI
1 comment:
Was the briefing given to PM accurate or it is an after thought by those hidden hand.
THE PRICE QUOTED 1.7 AND NOT 2.3!!!
Really??? Another bluff by KSU and RMAF. Price basic or with super fitted the best combat helicopter in the world?.
How on earth the procurement procedures are adhered to when the process are not followed?
Ageing Helicopter? That is why many crashes, so buy a new one then there will be no crashes!!! what a reason? That come from the expert advice-so I think they are not fit to be there. My foot to defence ministry for a good bluff.
Post a Comment