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10 APRIL 2024

Friday, December 23, 2011

RM11m wasteful defence ‘consultancy’ fees


Zaid Ibrahim believes defence consultants are being used to channel corruption money gained from possible kickbacks.
FMT ALERT
PETALING JAYA: Former law minister Zaid Ibrahim today demanded an explanation on the government’s need to hire consultants for defence procurement, particularly for the recent purchase of six patrol vessels (SGPVs).
Zaid, the Kita president, said as much as RM11.3 million were paid to several defence consultancy firms on the purchase in a transaction shrouded in secrecy at the expense of taxpayers money.
Documents provided by Zaid showed Boustead Naval Shipyard, former government defence contractor now privatised, had paid fees to European-based firms for “technical evaluation” fees through a Singapore account.
The former minister believed the employment of “agents” to purchase defence was not of military necessity but “necessary to channel corruption money” gained from possible kickbacks.
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