RM34 million for ‘scrap metal’ helicopters

Opposition DAP wants to know why Sabah Air leased its helicopters for RM1 if it was in the red.

TAWAU: Sabah’s two new Eurocopters, totalling RM34 million, are stirring a lot of dust in the state without even spinning their rotors.

Sabah DAP chairman Jimmy Wong has latched on the Auditor-General’s latest report that targets Sabah Air Aviation Sdn Bhd’s purchase of the Eurocopter AS 355 NP for RM13 million and Eurocopter EC 145 for RM21 million.

Wong said the whole deal is a scandal and the helicopters are “scrap metal”.

State Assistant Infrastructure Development Minister, Pang Yuk Ming, while defending the purchase of the aircraft, has however been struggling to explain why they have not been used.

In the latest twist, Wong accused Sabah Air Aviation chairman Yusof Kassim, and its chief executive officer Manu Sasidharan, of rushing to Kuala Lumpur to get the “operations specification certificate” for the two helicopters only after questions were raised about the aircraft’s air-worthiness.

He claimed both these officials had met with civil aviation authorities in Putrajaya on Dec 6.

Wong said this proves that the two new helicopters are faulty, adding that without the documents, Sabah Air Aviation cannot use the aircraft for any part of its business.

“I was informed that the AS 355 NP does not have this certification and that its airworthy certification was not renewed since it expired about a month ago.

“The AS 355 NP is therefore not allowed to fly any passenger with an expired airworthy certificate. The chopper may only fly under special conditions such as for flight testing to qualify for the airworthy certificate renewal.

“If this is true, how dare Sabah Air Aviation invite me on Dec 16 to fly in the AS355NP?” Wong asked.

Aircraft for CM

Wong also questioned why the EC145 bearing the registration mark “9M-CMD” had a “VVIP seats configuration” and if it was exclusively for the chief minister’s travel.

“Is it true that ’9M’ signifies that the aircraft is registered in Malaysia and the remaining three alphabets are a special registration mark? I am told that Sabah Air specially selected 9M-CMD to signify the Chief Minister’s Department,” he said.

He said Sabah Air should provide the original copy of the “operation specification certificate” with the EC 145 registration “9M-CMD” and AS355 NP registration “9M-MOH”.

“I do not want to be shown a photocopy like what NCT (NCT Forwarding & Shipping Sdn Bhd) did when showing a photocopy of its expensive AS350 which I was informed was already deregistered a few months ago,” he said, alluding to the renewal of NCT’s contract for the flying doctor service.

Wong, who is also the Sri Tanjung assemblyman, also questioned why the state health department had appointed NCT Forwarding despite knowing that the company did not have any helicopters.

Meanwhile, the NCT Group Business Solution and Development manager Frankie Chai described Wong’s allegations as misleading.

“We have two Bell helicopters and an AS350 BA chopper. It is not as Wong had claimed and we are disappointed with his allegations.

“We have also been the health department’s contractor for the flying doctor service for the past six years,” Chai said, adding that the aircraft were bought to provide services in cases of emergencies for the people in Sabah and Sarawak, especially in the rural areas.

Show us original certs

However, Wong remains unconvinced and challenged the logistics company to produce the original copy of AS355NP airworthy certificate.

He also asked the state government if it was true that only one pilot had been sent for training to fly the AS355 NP and not three as claimed, and that even that no pilot was sent for training to fly the EC145.

“My information is that three pilots were sent for EC 145 training, one resigned and at this moment only one can fly as the other pilot’s currency to fly the EC145 has expired.

“I hope the invitation to fly on Christmas Day for a joy ride with children is still on.

“The people and I would like to see Sabah Air’s two new choppers and NCT’s three choppers on that day with all the original certificates in order unless both have something to hide from the people,” Wong said.

Sabah Air Aviation was established in 1975 under the Company Act 1965 and has an authorised share capital of RM100 million and paid-up capital of RM40.87 million.

It is owned by the Sabah government which holds RM31 million (75.9 percent) worth of shares and Sabah Energy Corporation Sdn Bhd with RM9.87 million or 24.1 percent shares.

Sabah Energy Corporation is a wholly owned state government company.

Sabah Air has three direct subsidiary companies and two indirect subsidiary companies.

Helicopters leased for RM1

Sabah Air’s main business thrust is in air transport service and maintanence of planes.

Services provided are oil support services, aerial survey and photography, filming, heavy lifting/underslung job, flying doctor service, power work, executive charter and aerial crop spraying & application.

Sabah Air has two King Air type planes, a Nomad and 11 helicopters (eight Bell type, two Eurocopter and one Augusta).

The Auditor-General’s Report 2010 found that in general, Sabah Air is capable of providing air service and looking after planes but its income from 2007 to 2009 was not consistent.

Sabah Air recorded a clear profit for 2007 and 2008 while for 2009 it recorded a loss.

Income for 2007 was RM18.24 million and increased to RM27.51 million in 2008; however, the income fell to RM20.07 million in 2009.

The higher 2007 income was due to the sales of two units of the aircraft totalling RM8.41 million, while the higher income for 2008 was due to high demand during the general election.

Sabah Air’s profit before tax was RM2.78 million for 2007 and RM1.82 million for 2008 and for 2009 a loss of RM2.71m before tax.

The fall in profits has stirred queries over why Sabah Air had leased the helicopters for RM1.

“Sabah Air is in the ‘red’ and is not making money in 2009, so why lease at RM1?” asked Wong.