Najib broke every rule to ensure Scorpene-linked firm won Ampang LRT deal - PKR

PKR strategy director Rafizi Ramli has accused Prime Minister Najib Razak of favoring Thales, demanding an explanation as to why the French multinational company involved in Malaysia's disastrous purchase of two Scorpene submarines was allowed to enter three bids for the billion-ringgit Ampang LRT deal.

According to Rafizi, Thales was involved in three out of eight shortlisted consortia in state-appointed consultant Halcrow’s technical evaluation report, namely, George Kent-Wijet-Thales, Colas-CMC-Thales and Samsung-LG-Thales.

“Every single rule was broken in order to give an advantage to Thales. Who else can make these instructions unless it was under the patronage of the prime minister?” Rafizi told a press conference on Friday.

“It reflects the close relationship between Datuk Seri Najib Razak and this company Thales since the Scorpene purchase."

Only Thales allowed multiple bids through various consortia - why?

Najib is believed to have decided to award the project to the George Kent consortium, although it is the least-qualified of all the consortia to undertake the job. So far, no official announcement has been made although the Umno-controlled newspapers have already leaked the 'news' quoting unnamed high-level government officials.

“From the list of bidders, no other transport technology suppliers are allowed to send more than one bid, except for Thales,” said Rafizi.

He said the “favorable treatment” was against the usual “good practice” in a tendering process.

Rafizi has also previous shown documents from the Finance ministry's procurement unit informing Balfour Beatty-Invensys Consortium that it had won the tender due to its lowest bid of RM950mil.

The George Kent consortia has not made any comment yet but it is believed that the highest bid of RM1.45bil was submitted by them, while project owner Syarikat Prasarana Negara Bhd had recommended one of the two South Korean consortia in the running - PDA Consortium.

Secondary school friend

Earlier this week, Rafizi revealed minutes from another meeting held by the Finance ministry procurement unit to show that Najib was in full control and had full knowledge of what was going on in the tender. The minutes signed by Najib showed it was the PM himself who led the decision to award the deal to George Kent.

Listed on the Malaysian bourse, George Kent Bhd incidentally is controlled by Najib's friend from his secondary school days - Tan Kay Hock.

“The only expertise George Kent has is in the production water gauge meters. The company was earlier rejected because the company did not meet the minimum technical requirement for the job,” Rafizi told a press conference on Tuesday to reveal the minutes he had obtained from anonymous sources.

“I think it is a disaster in the making if a company that make water meters is offered a multi-billion ringgit LRT extension project."

The Thales-DCNS-Scorpenes link

But what will shock Malaysians most is how Thales was allowed to mount multiple bid through various consortia - a highly irregular practice and as Rafizi pointed out is against good practices and corporate governance.

Najib will have to convince his countrymen that the advantage given to Thales advantage was not linked to the RM7.3bil Scorpenes purchase that he sanctioned in 2002 and is now the subject of a corruption trial in Paris.

Thales owes a strategic stake in DCNS, the vendor of the two submarines. DCNS is the party accused of paying bribes of Malaysian officials including Najib to seal the Scorpenes sale.

Speculation is rife that Najib might now be trying to 'placate' DCNS by giving part of the Ampang LRT deal via George Kent to its owner Thales. Evidence given by officers of DCNS and Thales  is crucial for the French investigative judge to decide whether or not Najib was directly involved.

The Malaysian PM faces a possible subpoena to take the witness stand in Paris. Failure to do so may result in him becoming a fugitive of the law as far as Eurozone countries are concerned.

High treason but only mere denial and no inquiry by the Malaysian authorities

French lawyer Joseph Breham, who is acting on behalf of Malaysian NGO Suaram, had revealed in May that French investigators found evidence showing that Thales had paid 32 million euros (RM144 million) to purchase secret naval documents from Terasasi, a company owned by Najib's close friend Razak Baginda.

Zahid Hamidi, the Malaysian defense minister, and other top naval chiefs have been quick to deny any state secrets had been sold, even before conducting a full probe. This has prompted criticism they were out to cover up for Najib, as the 'natural' reaction would be to scrutinize the French evidence as the alleged crime was serious - amounting to high-treason.

The complaint being heard in the French court was filed by Suaram after the Malaysian government refused to initiate any investigation into the controversial Scorpene purchase despite public outcry over the exorbitantly high price tag and unsuitability of the submarines for the local coastline.

If found guilty, DCNS may have to compensate the Malaysian people for the overpricing inflated by the bribes. It would also pressure the Umno-BN ruling coalition to finally call a public inquiry. If the French trial determines that Najib was among those who benefited from the illicit commissions paid by DCNS, he would have no option to resign.

Court documents submitted so far show a money trail for the alleged bribes that lead to Baginda, who has been accused of being Najib's proxy, and Umno, which Najib's ruling party.

Malaysia Chronicle