No Irregularities In The Purchase Of Eurocopter, Says PAC

KUALA LUMPUR, Nov 3 (Bernama) -- The Public Accounts Committee (PAC) found no irregularities in terms of procedures in the purchase of 12 Eurocopter EC725 helicopters worth RM1.604 billion, its chairman Datuk Seri Azmi Khalid said.
He said that based on PAC's two-week scrutiny on the technical and financial details of the deal, the PAC found that the procedures used were in accordance with internationally-accepted procurement practices.
The PAC was not happy however, that no physical evaluations were made on the helicopters, he said.
"It is the PAC's responsibility to scrutinised whether the correct procedures were followed. It is important to remember that this is an international tender process... we are being scrutinised (by people) around the world; so we have to be transparent.
"We have evaluated the deal and found that it was done in accordance with the procedures," he told reporters after chairing the PAC meeting today.
The PAC also acknowledged the country's need for modern helicopters as the ageing Nuri helicopters, which have been in used since 40 years ago, were being phased out.
He said that of the seven tenders received, three were found to be suitable, with offers of RM1.262 billion, RM1.604 billion and RM2.442 billion respectively.
"The Finance Ministry recommended the RM1.604 billion tender from Eurocopter," he said.
On the lack of physical evaluation on the helicopters, Azmi said, the Defence Ministry had explained that it did not carry out any test flights as the Eurocopters were already being used in several countries.
"In fact, local pilots had tested the EC725. Based on this experience, they felt that it was not necessary to carry out test flights," he said.
Azmi said that the PAC would suggest to the Defence Ministry to carry out a detailed physical evaluation on the aircraft when the purchase had been finalised.
Asked why the government did not choose the lowest package, he said it was because it did not meet the requirement.
He also said that the price quoted in the Eurocopter tender was only valid until February next year, afterwhich it would be up to the supplier whether to offer the same price or renegotiate the offer.
On the statement by DAP advisor Lim Kit Siang questioning the rationale for the new helicopters when the Nuri could still be upgraded, Azmi said that bigger expenses would be needed to upgrade the ageing aircraft.
"There are things which the Nuris are lacking. They cannot do night flight, they have no autopilot... all these can be overcome by acquiring new helicopters," he said.
Asked if there were rooms for the Anti-Corruption Agency (ACA) to investigate the deal, Azmi said, "It is up to the ACA. As far as we are concerned, that is what we see in terms of the procedure."
He said that the PAC would continue scrutinising the deal.
Meanwhile, Azmi suggested that the government set up an independent panel to monitor purchases which involve huge expenses.
This was to rectify any weaknesses and to assure the people that the deals were carried out in a transparent manner and without wastage.
"It is up to the government to determine the panel's membership. This is not only for puchases made under the Defence Ministry but also for all ministries," he said.

tunku : on the purchase of the eurocopters, i think the government should not delay it any further as we will have to pay more in future and nuri needs to be replaced asap as it is in bad condition. on the irregularities, you can set up 100 of bodies and if they found out that there is no irregularities, the opposition will still not be satisfied with the finding.