GEORGE TOWN: The Consumers' Association of Penang (CAP) has urged the government to establish a Royal Commission of Inquiry (RCI) to investigate the Defence Ministry arms procurement scandals stretching over the last 40 years.

CAP president Mohideen Abdul Kader said the RCI should make recommendations for effective governance and oversight mechanisms to eliminate corruption and abuse of power in the ministry and related government agencies.

"The serious weaknesses in the ministry have adverse effects on our national security and pose an internal threat to our sovereignty.

"This issue has taken an added urgency, given security tensions in the South China Sea and the reconfigurations of political power in the region. 

"We welcome the recent announcement by our Prime Minister to declassify secret reports on military and security procurement to enable law enforcement authorities to prosecute those involved in corrupt practices.

"The Malaysian Anti-Corruption Commission (MACC) has submitted its investigation papers to the Attorney-General on the littoral combat ship (LCS) procurement scandal. The AG must act promptly to bring those involved in corrupt practices, regardless of their status and ranks, to justice and strengthen our people's confidence in the judicial process," he said today.

Mohideen said since the 1980s, the ministry has been plunged in procurement scandals which is still continuing.

He said in 1981 Malaysia purchased 26 units of the British Alvis Scorpion tanks. The tank's recommended Rolls-Royce gasoline engines were replaced with slower diesel ones, and the guns with heavier ones.

He said the modifications made the tanks heavier and slower, a sitting duck in any military encounter.

"They were scrapped in 2018 with the change of government.

"The 186 SIBMAS armoured personal carriers purchased by Malaysia in 1983 were found to lack combat effectiveness.

"Malaysia bought 18 Russian Sukhoi Su-30MKM Air Superiority Fighters, taking delivery of three in 2007 and the rest in 2009. The deal, worth RM3.2 billion, was made through a Russian state company whose local agent was a company headed by a former federal minister and the Chief Minister of Melaka. The local company was paid 12 per cent of the purchase price, amounting to RM380 million.

"By 2018, most of them had become unserviceable. Former Defence Minister Mohamad Sabu revealed that only four of the 28 Russian fighter jets could fly. The rest were under repair and the ministry had terminated the contractor, apparently for failing to maintain the jets in airworthy condition.

"In 2002, the ministry negotiated through a Kuala Lumpur-based local company Perimekar Sdn Bhd to buy two Scorpene submarines and a used Agosta submarine produced by the French government at the price of RM4.5 billion. Perimekar, owned by a close associate of the Defence Minister then, was paid a whopping commission of RM510 million, 11 per cent of the purchase price of the submarines.

"News reports have highlighted how these submarines have been plagued by performance issues that raise doubts about their military effectiveness," he added.

In 2004, Mohideen said, the PSC-Naval Dockyard, owned by a minister's crony, was contracted to deliver six patrol boats for the Malaysian Navy.

Two boats were delivered in 2006, which were not fully operational.

He said by 2007, the original cost of RM5.35 billion ballooned to RM6.75 billion, a 26 per cent increase.

Mohideen said the auditor general reported the ministry had paid RM4.26 billion although only RM2.87 billion worth of work had been completed, an overpayment of 48 per cent.

He said the cabinet also waived late penalties of RM214 million, raising suspicions of a cover-up.

The debt-ridden private company was finally taken over by Boustead Holdings, another bailout of politically connected cronies.

Mohideen said last month another scandal exploded with the publication of the Public Accounts Committee report, after two years of investigation, on the purchase of six littoral combat ships (LCS).

He said the committee found that the Royal Malaysian Navy (RMN) recommended purchasing six Dutch-made Sigma LCS, but the ministry chose the French-made Govind LCS - without consulting the ultimate user, the Royal Malaysian Navy.

In 2014, a contract was signed with Boustead Naval Shipyard Sdn Bhd (BNS) to build the French-made LCS at the cost of RM9 billion.

The first ship was to be delivered by April 2015 and the remaining five at six-month intervals until 2023.

"Although over RM6 billion has been disbursed for the project, not a single ship has been delivered.

"A misleading launch ceremony was held for the ship named Maharaja Lela even though the ship has still not been completed. This deception has caused grave embarrassment to the Sultan of Perak who had graciously officiated the launch ceremony.

"All the scandals highlighted above indicate that the corruption and abuse in the procurement of security hardware and systems is not simply a case of 'bad apples' but a systemic problem within the ministry and related government agencies.

"It calls into question the institutional integrity of the whole procurement and security management process. And it seriously jeopardises the efficacy and battle-readiness of our security forces to be able to protect our nation," he stressed.

Mohideen said following the Public Accounts Committee report on the LCS, there had been several calls for a RCI of the LCS scandal.

He said the inquiry should not be confined to the abuses in this one particular scandal but must involve the institutional weaknesses in the ministry, which enables repeated corrupt practices and abuse of power over the last decades.

"We have spent and are spending billions of Ringgit of public money to purchase sophisticated weaponry and security equipment but with poor outcomes to protect the security of our nation.

"The incestuous relationship between politically connected local agents of foreign arms manufacturers and the ministry must be ended," he said, adding that an article in 'Foreign Policy in Focus' revealed "many foreign arms manufacturers generally used well-connected Malaysians as their lobbyists for contracts.

According to Mohideen, the commission paid to such representatives is estimated to range from 10 to 20 per cent.

He pointed out that these commissions, amounting to hundreds of millions of Ringgit, could be used to build more hospitals, schools and infrastructure for the people.

"These commissions act as an incentive for corrupt officials and politicians to design nefarious schemes to steal public funds.

"The Public Accounts Committee must be congratulated for its excellent report on the LCS scandal.

"The Parliament's active role to prevent abuses by government officials and politicians is exactly what the public has been calling for.

"The next important step now is to establish the Royal Commission of Inquiry to begin the urgent process of cutting out the cancer of corruption that is destroying our nation," he added.