S'gor happy to assist MACC to probe Najib's Scorpene deal...

The Selangor government wants the Malaysian Anti Corruption Commission (MACC) to investigate allegations that Najib Razak had asked US$1 billion (RM3 billion) for Syarikat Perimekar Sdn Bhd over the Scorpene submarines negotiations.

Selangor MB Abdul Khalid Ibrahim said his government is “shocked with the discovery of proof by French prosecutors that link then defence minister Najib Razak” to the alleged “bribe”.

“This matter cannot be taken lightly by the Malaysian authorities especially the MACC, seeing that the individual implicated is now holding the highest post in the government as well as the chairperson of BN Selangor,” said Khalid (right) in a statement today.

He was responding to a fax showing that Najib had asked for the amount for Perimekar as a condition for a meeting between French shipmaker DCN's subsidiary DCNI and himself on July 14, 2001.

NGO Suaram had on Thursday disclosed the fax, one of 153 documents in the possession of the French prosecution.

Khalid urged MACC to investigate the matter as it involves “abuse of power” in relation to the controversial Scorpene deal, and offered his administration’s assistance.
 
“If the MACC has technical problems from the point of law in starting investigations, the state government is prepared to assist the commission in getting expert advice from international law experts,” said the MB.

“If needed, the anti-corruption fund from the Geran Selangorku can also be channelled to assist in the efforts,” he added.

Perimekar is wholly owned by KS Ombak Laut Sdn Bhd, that is controlled by Abdul Razak Baginda, a close confidante of Najib’s.

Last June Defence Minister Zahid Ahmad Hamidi in a parliamentary reply denied that Perimekar had been paid a commission over the deal, saying instead it had received RM0.57 billion for “coordination services”.

The two submarines and its related expenditures had by that time rung up a total of RM7.3 billion.- malaysiakini

 

S'gor tawar geran negeri siasat isu Scorpene...

Ekoran penemuan terbaru pendakwa awam Perancis, kerajaan Selangor menyeru Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) menyiasat urus niaga kapal selam Scorpene bernilai berbilion ringgit.

Malah, Menteri Besar Tan Sri Khalid Ibrahim berkata, jika perlu, dana antirasuah dari "Geran Selangorku" juga boleh dibelanjakan memandangkan tuduhan itu serius dan melibatkan perdana menteri sendiri.

"Jika pihak SPRM mempunyai masalah teknikal dari segi undang-undang dalam memulakan penyiasatan, kerajaan negeri bersedia membantu suruhanjaya berkenaan mendapat nasihat dari pakar undang-undang antarabangsa," katanya.

Dalam kenyataan hari ini, Khalid berkata, sebagai kerajaan negeri yang mementingkan ketelusan dan pertanggujawaban, Selangor tidak boleh hanya memeluk tubuh dalam isu serius itu.

Pendakwa awam Perancis yang menyiasat urus niaga pembelian senjata Perancis-Malaysia kelmarin mendakwa menemui bukti bahawa Najib sebagai menteri pertahanan ketika itu meminta AS$1 bilion (RM3 bilion) untuk syarikat tempatan Perimekar daripada DCNI - anak syarikat pembuat kapal Perancis DCN.

Menurut kertas pendakwaan yang didedahkan oleh NGO hak asasi Suara Rakyat Malaysia (Suaram), terdapat faks menunjukkan Najib didakwa meminta jumlah itu sebagai syarat mengadakan pertemuan dengan beliau pada 14 Julai 2001.- malaysiakini

Perimekar just a travel agency says Scorpene's Paris Papers...

Having had the privilege of looking at some of the Paris Papers on the Scorpene submarine scandal recently, it behoves me to give anxious landlubbers a ‘hitchhiker's guide' to this convoluted mesh of payments that have gone on to grease this most expensive (more than RM7 billion) arms purchase in Malaysia's history.

Since Suaram lodged its complaint with the French courts for a judicial review of the Scorpene contract in November 2009, the French prosecutors have certainly been busy with their investigations.

They have interviewed officials in the French state-owned defence company, DCN, and related companies such as Thales as well as officials in the French Defence Ministry.

They have looked into bank vaults and scrutinised contracts, memoranda of understanding, memoranda of intent, invoices, bank accounts of various people including Abdul Razak Baginda (left in photo), the former close confidant of Prime Minister Najib Razak at the centre of the controversy.

There are also some rather telling internal confidential reports of DCN and the French Defence Ministry.

So far, the Malaysian Defence Ministry has told Parliament that:

• The cost of two Scorpene submarines together with logistic support and training was close to 1 billion euros (RM4 billion).

• Payment to Perimekar, an obscure company owned by Razak Baginda, for "coordination services" was 114 million euros (RM450 million).

Malaysian taxpayers will still need to pay even more for maintenance services, support and test equipment, missiles and torpedoes, infrastructure for the submarine base, training of crew, etc. The total bill for these two submarines will be in excess of RM7 billion.

But are these two the only transactions in a sordid affair that has claimed the life of a fair Mongolian lass named Altantuya Shaariibuu?

Perimeker's price 'inflated'

Negotiations on the submarine contract started in 1999. At the time, French defence giant DCN had this view of Perimekar:

"The amount to be paid to Perimekar is overvalued. It is not worth it... They are never more than a travel agency... The price is inflated and their support function is very vague... Yes, that company created unfounded wealth for its shareholders."

   
But this system was created by the Malaysian government so DCN had no choice.

Before 2002, when new laws in France and the OECD (Organisation for Economic Co-operation and Development) Convention came into force to make bribing of foreign officials a crime, money used to bribe foreign officials was even tax deductible. Such is the nature of arms deals all over the world.

DCN former finance director Gerarde Philippe Maneyas had made a claim for 32 million euros (RM127 million) allegedly used to bribe Malaysian officials for purchase of the Scorpenes.

The budget minister had questioned such a large bribe although he did eventually authorise the tax break.
With the new French law and OECD Convention against corruption in place after 2002, the French arms merchants had to find a way to pay commissions to their foreign clients. The method used was to create ‘service providers' that could "increase invoices" to take the place of ‘commissions'.

Thus, when DCN terminated its contracts, Thales took over as a private company, not involving the state. Thales International was appointed to coordinate the political connections.

A commercial engineering contract was then signed between DCN and Thales, referred to as "C5".

It covered 30 million euros (RM120 million) in commercial costs abroad. The companies used in the Malaysian case were Gifen in Malta, Eurolux in Luxemburg and Technomar in Belgium. The travel expenses of Razak Baginda and Altantuya were covered by these.

Another "consulting agreement" was signed in 2000 between Thint Asia and Terasasi for 2.5 million euros (RM10 million).

What role did Terasasi play?

The commissions and dividends for the Scorpene deal were funneled through two companies, Terasasi and Perimekar, both owned by Abdul Razak Baginda. His wife, Mazlinda is a director in Perimekar, while his father is a director in Terasasi.

Malaysians have heard about Perimekar and its "coordinating service" in the submarines deal. But so far there has been no mention of Terasasi.

Could the defence minister please tell the Malaysian public and Parliament the exact role of Terasasi in this Scorpene deal?

From the Paris Papers, we know that at least 32 million euros (RM127 million) were paid by Thales International (Thint) Asia to Terasasi.

There is an invoice by Terasasi dated Oct 1, 2000 for 100,000 euros (RM400,000). There is also an invoice from Terasasi to Thint Asia, dated Aug 28, 2004 for 359,450 euros (RM1.43 million) with a handwritten note saying: "Razak wants it in a hurry."

A confidential report in the Paris Papers notes:

"It appears that the management of Thint Asia is aware that the amount paid to Terasasi ultimately benefited Najib or his adviser, Baginda."

Thus, as Suaram's French lawyer Joseph Breham ( far right in photo) has put it:

"Investigations so far have provided sufficient evidence to point our finger at Malaysian officials in this (court) hearing."- Kua Kia Soong, malaysiakini

 

cheers.