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10 APRIL 2024

Sunday, August 11, 2013

Scorpene contract award was on transparent basis, says Jasbir Singh Chahl

Jasbir Singh Chahl,  in a statement issued to Bernama, stressed the contract between the Malaysian Government and Perimekar Sdn Bhd for a value equivalent of 115 million Euro was for defined scope of works, and provision of such services was within commercial norms.
The Star
The Scorpene contract award was made on a transparent basis to the technically most qualified party on a commercially competitive negotiated price, according to the architect of the submarine purchase.
Jasbir Singh Chahl,  in a statement issued to Bernama, stressed the contract between the Malaysian Government and Perimekar Sdn Bhd for a value equivalent of 115 million Euro was for defined scope of works, and provision of such services was within commercial norms.
He said the payments made under the Service Provider Agreement and other related arrangements were within the Organisation for Economic Co-operation and Development (OECD) guidelines.
 "It's therefore, my contention that irrefutable facts and data available in the public domain support the contention that the superiority of the technical and commercial offer tabled to the Malaysian Government was such that there was absolutely no need for any lobbying action whatsoever, in order to influence the decision making process," he said.

Jasbir contended the price negotiated was attractive, in view of the superior Malaysian Industrial Participation Programme and the Counter-trade and Offset Programme proposed as part of the overall proposal. 
He noted that the price tag for a single Scorpene Class submarine today was in the region of RM6bil.
 "We bought two for much less than the price of one today," he said. Malaysia purchased the submarines for about RM4.2bil.

Jasbir explained that contrary to deliberate distortions of facts and attempts to label him as 'broker' or 'commission agent', the reality was that he had been working with Thales personnel in Malaysia for several years on defence-related projects.

He said he was requested by Thales to analyse, evaluate and develop a proposal to supply state-of-the-art, non-nuclear submarines to the Malaysian Government.

For the purposes of the analysis, evaluation and development of the submarine project, he said he was introduced to DCN International (DCN), a French Government-owned manufacturer of the Agosta 70 Class and Scorpene Class submarines.

Jasbir said Perimekar was subsequently nominated as the local vehicle to spearhead the submarine project while Terasasi Sdn Bhd (TSB) was incorporated to serve as an external service provider to advise and assist Thales.

He said the scope that Perimekar covered, primarily post-contract award including among others:

- project management and project integration services;

- coordinating the involvement of Malaysian companies;

- assisting the main contractor in complying with all local laws and procedures;

- coordinating and monitoring the training of Royal Malaysian Navy personnel, inclusive of the provision of accommodation and necessary services for them and their families in France and Spain for a period of six years; and,

- providing monthly reports on all of the above.

 "The assertion that Perimekar was a travel agency which had been given such tasks is outrageous and completely without basis," said Jasbir, adding that it was a deliberate distortion of the facts by certain quarters for reasons of their own.
He contended that while some of the questions raised since the publication of his interview with a local daily on the Scorpene issue recently were sincere attempts to arrive at clarity, "many others in my opinion do not warrant a response for their sheer banality and the intransigence of the self-opinionated".

He further said that obligations of TSB under the service provider agreement included:

- employment of qualified personnel and/or sub-contractors to render required services;

- provision of regular reports detailing project-related activities and information; and,

- ensuring that all employees and sub-contractors were in strict compliance with local and international laws, and that they were all cognizant of prevailing provisions of the OECD.

Jasbir said: "Between mid-2000 and December 2000, we had analysed, evaluated, conceptualised, strategised and led the development of the submarine project.

 "This work, role, participation and contributions culminated in the successful award of the submarine project in June 2002, on a G-to-G basis. Perimekar was also at the same time awarded the support services contract.

 Jasbir pointed out that several people had come forth over the years to make claims to having been in the know of the project negotiations, or that they had some "explosive revelations" to make, in relation to the submarines project.

 "They base these claims on having had either first-hand knowledge or that they had been given such information by others, inclusive of (Mongolian national) Altantuya (Shariibuu)," he said, adding that Altantuya had no role in the negotiations.

 "Thus far, I have yet to hear anything substantive from any of them. How Altantuya could have provided anyone with any meaningful information when she herself was not involved, escapes me.

 "Vested interests are trying their utmost to create a linkage where none exists. There appears to be little interest in the truth, only at keeping the issue alive for self interests," he noted.

Jasbir said the French courts had themselves stated that they were not looking at Altantuya's demise.

 "Their focus is on business practices within French companies, inclusive of DCN and Thales, in relation to defence-related contracts in Taiwan, Malaysia and Pakistan," he added.
 Jasbir said he had been asked by the French authorities to travel to France to assist them in their investigations.
 "However, due to my recuperation process and being in remission, I had informed them that I was unable to travel such distances.
 "They had then advised me that I could file a notarised deposition, pending an interview in due course.

 "This, I did, at the French Embassy in Kuala Lumpur on March 28, this year," he added.

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