Najib must account for the Scorpenes' never-ending costs

Pakatan Rakyat leaders have demanded a clarification from Prime Minister Najib Razak over what they said were never-ending costs for the two problematic Scorpene submarines he bought, in light of the latest RM532 million "in-service support" deal dished out to a government-linked firm.

“This looks like an additional cost the Najib administration has not disclosed before. It will jack up the total bill and re-emphasize the foolishness of the government in making such a wasteful acquisition,” PKR strategist Tian Chua told Malaysia Chronicle.

"But even though nasi sudah jadi bubur (the misdeed has been done), he cannot hide. The public has a right to an explanation and he must account for how he has spent taxpayers' hard-earned money."

The two Scorpene submarines purchased from France’s defense giant DCNS in 2002 were delivered only recently. Since arriving, both ships have suffered some form or other of malfunctioning and were reportedly docked for weeks.

Although the Navy has given both the Scorpenes a clean bill of health, the intimidating way in which they denied the malfunctioning accusations and warned off the media have sparked even greater suspicion than before.



Account to the public on the costs

Indeed suspicion, corruption, blackmail, sex and even murder have marked this arms acquisition, the chunkiest so far by the Malaysian government.

Apart from public worry that the submarines do not cater to national needs as the coastal waters may be too shallow to justify their high-tech costs, the ships have also dragged country into international infamy.

French financial police are investigating the possibility of corruption between DCNS officials and members of Malaysian defense ministry in the deal. On the Malaysian side, Najib was the defense minister who had authorized the purchase, and part of the French probe actually centers on a complaint that a commission of 114 million eurors or RM 570 million was paid to a firm controlled by his close friend Razak Baginda.

Apart from possible graft, Najib, his wife Rosmah Mansor and Baginda were also implicated in the murder of a Mongolian translator Altantuya Shaariibuu, who had allegedly acted as a go-between for Baginda and DCNS.

“The Scorpenes have cost Malaysia much more than the actual billions of ringgit spent. No doubt the damage has been done but it does not mean that Najib can sweep it under the carpet especially when new bills are still coming in,” PAS vice president Salahuddin Ayub told Malaysia Chronicle.

New bills still coming in

Defense Ministry data show the total costs for the 2 submarines excluding annual maintenance came up to 1.34 billion euros or about RM6.7 billion before taking into account maintenance fees. The sum broke down down to 969 million euros for the two submarines, 219 million euros for missiles, 38 million euros for miscellaneous equipment and 114 million euros for commission paid to Perimekar, which is Baginda’s firm.

Maintenance fees were initially agreed at RM600 million for six years or RM100 million per year. However, this was later increased to RM270 million per year.

On Friday, in a filing to the Malaysian stock exchange, Boustead Holdings Berhad announced the government’s decision to award the contract to its unit Boustead DCNS.

“Boustead DCNS Naval Corporation Sdn Bhd had received a LETTER OF AWARD dated 12 August 2010 from the Government of Malaysia for the contract to undertake In Service Support (ISS) for the two Royal Malaysian Navy’s Prime Minister Class Scorpene Submarines (“the Contract”). The Contract is for total contract sums of EUR 193 million and RM 532 million and is effective for a period ending 30 November 2015.

“The contract includes a full Submarine Integrated Logistics Support package. This consists of a comprehensive spare parts package as well as the outfitting of workshop equipment, respective yard facilities and equipment, submarine safety conditioning facilities and their corresponding upkeep and maintenance. The contract also covers tug boat services and the operation and maintenance of the shiplift, transfer system and submarine “umbilical services”.

50 years of ISA

Tian Chua

1 August is the 50th Anniversary of ISA. The notorious law was enacted in 1960 when the legitimacy of the newly founded federation of Malaya was challenged by armed insurgency.

The ruling Alliance led by late Tunku Abdul Rahman assured the Parliament that the ISA would not be used against dissidents abiding by peaceful means of struggle and within the framework of the Constitution. Nonetheless as soon as it was passed, activists from a wide range of political spectrum became victims of the repressive law.

It is obvious that despite the apologists of authoritarian regime frequently justifying the law in the name national security, the ISA is undoubtedly oppressive, undemocratic and it contravenes basic human rights. In half a century of its existence, thousands of people had been imprisoned, and deprived of their families, livelihood and freedom.

The draconian law has conveniently become the weapon for the BN regime to perpetuate corruption and to cover up its misuses of power. It is also a tool to institutionalize a culture of fear among the Malaysian people.

The practice of detention without trial is not condoned by any religious values. In addition to preventive detention, the ISA had been a license for the authorities to torture and torment detainees. Thus such inhumane law should be condemned by democratic minded people both domestically and globally.

In the last few years, in collaborating with civil society organizations, Parti Keadilan Rakyat had intensified its campaign against the ISA. We are unequivocal in our demand for the abolition of the notorious law.

KEADILAN regrets the reluctance and delay in removing the provision for indefinite detention. Throughout 50 years we have witnessed innocent individuals becoming victims of this unjust law. The long list of people included Anwar Ibrahim, Syed Husin Ali, Lim Kit Siang, Karpal Singh, Lim Guan Eng, Jeffry Kittingan, Mat Sabu, and many other Pakatan Rakyat leaders.

We believe that Najib and his Government is aware of the growing opposition against the Act. The PM must surely understand that the continuous existence of the ISA will project a negative image of Malaysia in the eyes of the international community.

By not abolishing the ISA, we suspect PM Najib is keeping his options open. Once the political interests of the ruling UMNO are threatened, I am convinced Najib would have no qualms in ordering a heavy crackdown using the ISA.

On behalf of Parti Keadilan Rakyat, I reiterate our firm and unambiguous stand-- the ISA must be abolished. We are determined to continue our struggle for change and to make sure that laws which are inconsistent with human rights and democracy are eventually reformed.

(Tian Chua is the Member of Parliament for Batu and the strategic director of PKR)

Corruption Charges: For those who were at the very top, wipe their mouths after eating

More high-profile arrests involving Members of Parliament and state assemblymen can be expected in the next few days following the arrest of former MCA president and ex-Transport Minister Ling Liong Sik on corruption charges related to the Port Klang Free Zone financial debacle.

“Within the next week or so, you can expect to see a few MPs and ADUNs hauled up,” says an Umno watcher.

“Pakatan Rakyat can sneer all they want at Najib but he knows this is the only way to regain public trust and confidence. He is also aware his time is running out and he has to get cracking.”

The source was referring to Prime Minister Najib Razak, who on Wednesday went on sudden leave until August 10.

Selangor Umno and MCA

Speculation is rife he is trying to spruce up his image ahead of elections widely expected to be held soon. The 10th Sarawak state election is expected in October this year, while national polls are likely to be held some time in the latter half of 2011.

Among those likely to be arrested in the coming days are several top leaders in Selangor Umno including former chief ministers. And if MCA leaders were shocked by Ling’s arrest on Thursday, they should brace themselves for more quakes to rock their party.

The Umno source declined to divulge names, but several possibilities include former leaders like Muhammad Muhammad Taib and Chan Kong Choy. Both have been accused of wrongdoing in the past but have always denied involvement.


More aggressive than 2004 swoop

Despite the latest swoop, the most extensive since 2004, Ling is likely to be the highest ranking leader to be nabbed. There are also fears that a deal has been brokered and Ling will be able to extricate himself from the charges later on.

“Najib cannot do everything at one go. At this point in time, this is what is possible and there are already many big names involved. It is much more aggressive than the clean-up Pak Lah launched prior to the 2004 general elections," said the Umno watcher.

"As for Ling, if he hires the best lawyers to fight for him, what's wrong if they can get him off. Only time will tell - on our part, we didn't fix anything.This is the nature of the legal system and also his personal human rights."

Wiping one's mouth

Nevertheless, while Malaysians would welcome more arrests, particularly those who have long been under public suspicion, the swoop is likely to fall flat unless the biggest fishes are also nabbed..

To them, if top Umno guns like former premiers Mahathir Mohamad, Abdullah Badawi, his son-in-law Khairy Jamaluddin and even former International Trade Minister Rafidah Aziz are left untouched, it would reflect a lack of political courage on Najib's part.

Najib himself has also been accused of high-level graft in the Scorpene submarines case.

“At the end of the day, you need solid evidence. For those who were at the very top, maybe they have been smart enough to know how to wipe their mouths after eating. It won't be easy to catch them. We too want a better Malaysia but it cannot happen overnight,” the Umno watcher said.

Lawyer has affair with Saiful

KUALA LUMPUR - IN A sensational twist in Malaysian opposition leader Anwar Ibrahim's sodomy trial, a prosecutor has been dropped after being accused of having an affair with the star witness.

Defence lawyers said the surprise move bolstered its claim that Anwar, a former deputy premier who was sacked and jailed on separate sex and corruption counts a decade ago, is the victim of a political conspiracy. The prosecution said it was dropping Farah Azlina Latif from its team in the ongoing trial, following claims she was romantically involved with Mohamad Saiful Bukhari Azlan, 25, who has accused Anwar of sodomising him.

'This can be very difficult for us but any personal matter, if it can have any implication in whatever form... will be handled very seriously,' attorney-general Abdul Gani Patail told state media late on Tuesday. 'This move is also to ensure that the smooth running of the case is not affected,' the government's top lawyer said, without specifying whether or not the claims were true.

An official at the attorney-general's office confirmed his comments to AFP, and said that Farah Azlina would also be transferred to another department. The defence said it had sought an official explanation from the prosecution after a leading Malaysian political blogger said on his website that the lawyer was in a sexual relationship with Saiful, who has a fiancee.

'The implications are serious,' Anwar's lawyer Sankara Nair told AFP on Wednesday. 'There is a perception that Saiful could have been given access to confidential information of the trial and that would compromise the integrity of the prosecution,' he said.

Mr Sankara said the development strengthened claims that there was a conspiracy against Anwar, after Saiful testified that he met with high-profile individuals including Prime Minister Najib Razak before lodging his complaint. The attorney-general however said that Farah Azlina, one of eight prosecutors in the Anwar case, had no access to confidential information. The sodomy trial, which began in February and has been punctuated by lengthy delays, is set to resume on August 2 for a one-month session. -- AFP