SHAH ALAM: Report lodged on MD530G deal. Bernama, the national news agency today reported that the Defence Ministry has lodged a report with the Malaysian Anti Corruption Agency (MAAC) regarding the MD530G deal for the Army.
The Bernama report
PUTRAJAYA, June 13 (Bernama) — The Defence Ministry today lodged a report with the Malaysian Anti-Corruption Commission (MACC) over the purchase of six helicopters worth more than RM300 million in 2015, which has yet to be received by the Malaysian Armed Forces to date.
The report was filed by the ministry’s representative at the MACC Headquarters, here.
According to the ministry’s source, the McDonnell Douglas MD530G lightweight combat helicopters were supposed to be received in two phases, namely two in July 2017, and the rest in December 2018.
The source said the terms of the purchase agreement did not safeguard the interests of the government, which included clauses such as ‘the contract is valid for two years, or, until the local company appointed as the agent successfully delivers the helicopters.’
According to the source, the approval for the purchase of the military assets in November 2015 was also not done according to set procedures.
“The contract was done via direct negotiation with the agency, while many terms of the contract were not favourable to the government, for example, the contract was approved without any military specifications, a mandatory requirement in the purchase of military assets,” the source said.
He said McDonnell Douglas had also cancelled the local company’s contract as its agent in Malaysia by the time the helicopter purchase agreement was signed.
The source added the Malaysian government had already paid RM112.65 million, which was 35 per cent of the total cost of the acquisition, to the company.
–BERNAMA
I am not sure whether the report lodged with MACC stated that the deal was with McDonnell Douglas or the reporter – as with other MSM reporters – had confused MD Helicopters with the former aerospace company.
Anyhow I am putting this on the record only as a freelancer I am not able to get any official confirmation over the report with the MACC or any updates. We will have to wait and see whether the report will led to charges being filed in court.
You can check the Malaysian Defence archives for more information on the MD530G deal. Before anyone asks, I have been told that the first batch of MD530Gs for the Army are expected to be delivered by the third quarter of this year.
— Malaysian Defence
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View Comments (53)
From the way the report is worded (the contract was approved without any military specifications, a mandatory requirement in the purchase of military assets), it seems like it is not what the army wanted in the 1st place.
The current owner of this contract (destini) might also be a victim in this case, as it took over the contract after it was awarded originally to another company, halaman optima.
So is it just a way for the army not to get something it never wanted in the 1st place?
...... - “ approved without any military specifications”
The thing that comes to my mind is - in this context - what defines “military specifications”? Rotor blades that can withstand small arms fire? Crash proof seats? Military grade radios rather than commercial ones? What?
Take the RMAF’s Beechcrafts as an example. Apart from the fact that they have radar, ESM, etc, how do they differ from civilian operated ones? Were they delivered with “military specifications” per see?
the contract was approved without any military specifications, a mandatory requirement in the purchase of military asset\"..is the version of said helicopter purches for civilian use(specification) but painted with military camo???
The writer might meant the army requirements, like what specific performance, capability, weapons, avionics etc. the military wants.
Keep it up...ie these practices of awarding local companies contracts for supplies from OEMs. An obvious way of commissions or corruption. Tell me under PH has there been any change? Dissappointing
...... - “ike what specific performance”
If indeed the helicopter doesn’t meet “military requirements” because technical performance then it shouldn’t have been ordered in the first place and I have to ask again : who was responsible for deciding how it was fitted out and who selected it?
,..., - “weapons, avionics”
As for weapons and avionics it has a decent fit; based on what can be installed on a platform of that weight and size. The only possible missing element as far weapons go is Hellfiire but did the army specify it and could the allocated budget cater for it?
Same goes with the avionics fit which is pretty decent. Its got a glass cockpit, decent comms capability, NGV compatible cockpit, FLIR, store management system and other stuff.
Thus it can’t be the weapons or avionics fit which doesn’t meet “military specifications”.
Ultimately even if it was the local company that was dealing with the OEM and not the army; the army should have ensured that the company had the army’s interests at heart in ensuring the contract has a risk clause penalty, the needed warranty period, etc. Or was it again a case of the local industry specifying and selecting things and not the end user; like with Adnan and the PT-91s? If that is indeed the case the previous government shares a lot of the blame.
Faizul,
No.....,,,,,,
Read up on what Marhalim has written on the subject. It’s not a case of a civilian spec platform painted in camo to fool someone.
Also, until we have more info, nobody here can say with any certainty what “military spec” really means in this context. What we can do is is try to narrow things down and look at plausible scenarios, based on what we know, as I tried to do in my previous posts.
So we won't be getting any form of an attack chopper anytime soon? Orz.
Attack heli have been on the TDM agenda for many, many years now. Yes, they won't be getting what they wanted (Apache, Tiger) but hey at least a light attack/scout is better than door gun mounted Nuri.
@ azlan
" Same goes with the avionics fit which is pretty decent "
Well the specific avionics being put into the helo is pretty impressive IMO, and a very eye opener for me. Those avionics IMO we can learn much about and install in any available platform to turn it into COIN platform, such as TUDM PC-7 and police PC-6.
The MAF should seriously consider acquiring excess USMC AH-1W choppers. It is the best choice amidst the current austere financial climate.
https://www.thedrive.com/the-war-zone/17810/pentagon-to-sell-off-its-ah-1w-super-cobra-attack-helicopter-fleet