DCNS, Boustead get RM10b contract?

French DCNS and Boustead Naval Shipyard are believed to have sealed a contract to build patrol vessels, according to Kita president Zaid Ibrahim.

KUALA LUMPUR: Controversial companies, French DCNS and Boustead Naval Shipyard Sdn Bhd (BNS), are said to have received a contract to build patrol vessels worth RM10 billion, according to former law minister Zaid Ibrahim.

DCNS is currently being probed by French prosecutors for the scandalous Scorpene submarine deal with the Malaysian government, which is also linked to the murder of Mongolian Altantuya Shaaribuu.

“DCNS will build these patrol vessels in Perak this time (after all, our Defence Minister (Ahmad Zahid Hamidi) hails from Perak). Unsurprisingly, BNS has no idea how to build these patrol vessels, nor does it know what electronic and fighting equipment these vessels should be equipped with.

“BNS will not listen to advice of the Navy either. DCNS will decide and dictate everything, including the price of about RM10 billion (usually, it will announce a lower figure but these costs usually escalate further on various grounds (such as additional requirements).

“This is the same old modus operandi,” said Zaid, who is also the president of independent party Kita in his recent blog posting.

Second scandal for BNS

This is the second time BNS has been implicated in an arms contract scandal.

The only naval shipyard company in Malaysia was first linked to allegations of irregularities when an opposition lawmaker claimed the government was paying BNS 870% more than market price for six offshore patrol vessels (OPVs) for RM6 billion.

Meanwhile, the French prosecution is ready to go on full trial over the submarine fiasco that could see Prime Minister Najib Tun Razak and wife Rosmah Mansor called to testify before the French court.

The case was filed by a local human rights group Suaram which questioned the alleged payment of 114 million euro (RM500 million) in commission to Perimekar Sdn Bhd, a subsidiary of KS Ombak Laut Sdn Bhd, of which the wife of Najib’s aide Abdul Razak Baginda is a principal shareholder. Najib was the defence minister at the time of the deal.

Zaid did not state if he has the evidence to back his claims but urged opposition politicians to unearth more of these scandals.

He also opposes political involvements in military matters.

“Our army, navy and air force chiefs must be the judge of what we need and the appropriate price we should be paying for these purchases, not the politicians. These men, not the politicians, are the ones who are aware of what our country’s defence requires.”