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MINISTRY OF DEFENCE

It is wrong to think that Defence scandals confine only to submarine, Eurocopter, Sukhoi, and big-time weapons.
Today I held a press conference in the lobby of the Parliament to expose more scandals in awarding Defence contracts. Last week, I received a written answer from the Ministry of Defence revealing that in 2008 54% of the RM8 Billion worth contracts had been awarded through direct negotiation.
The justification for direct negotiation was due to secrecy and sensitivity of national security. However here is a case that required high level secrecy:
One the favorite recipients of contracts is a guy named Syed Abu Hussin Bin Hafiz Syed Abdul Fasal. I found out that he is a loyal member of Umno from Bukit Gantang division (Membership no.: 00924477).
My search also found that he has been a director or share-holder of some 30 companies. Nearly 90% of contracts involving the supply of various items and rations to the Defence Department were awarded to his companies.
I presented to the reporters a list of these contracts. Here I just want to cite two examples:
a. Komantra Sajian Sdn Bhd was awarded through direct negotiation a privatisation project of food catering to the Armed Force (ATM) for Northern and Eastern Zones of Peninsular Malaysia. The contract cost taxpayers RM600 million.
b. GPB Coporation Sdn Bhd was given a RM300 million contract for bus transportation to service National Service training.
I don’t want to go into the issues of the quality of the services. I have also received a lot of complaints from members of our Armed Forces over the food quality and other supplies.
We have no doubt some hanky panky is going on here. I think Pak Lah didn’t have much time to go into the details in the Defence Ministry. However I call on him to at least set up an independent inquiry to audit the Defence spending and contracts.
By Tian Chua

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