NO IRREGULARITIES IN THE PURCHASE OF EUROCOPTER, SAYS PAC

KUALA LUMPUR, Nov 4 (Bernama) -- The Public Accounts Committee (PAC) found
no irregularities in terms of procedures in the purchase of 12 Eurocopter EC725
helicopters worth RM1.604 billion (US$447.4 million), its chairman Azmi Khalid
said.

He said that based on PAC's two-week scrutiny on the technical and
financial
details of the deal, the PAC found that the procedures used were in accordance
with internationally-accepted procurement practices.

The PAC was not happy however, that no physical evaluations were made on
the
helicopters, he said.

"It is the PAC's responsibility to scrutinise whether the correct
procedures
were followed. It is important to remember that this is an international tender
process... we are being scrutinised (by people) around the world; so we have to
be transparent.

"We have evaluated the deal and found that it was done in accordance with
the procedures," he told reporters after chairing the PAC meeting
MOnday.

The PAC also acknowledged the country's need for modern helicopters as the
ageing Nuri helicopters, which have been in used since 40 years ago, were being
phased out.

He said that of the seven tenders received, three were found to be
suitable,
with offers of RM1.262 billion (US$352.4 million), RM1.604 billion (US$447.4
million) and RM2.442 billion (US$681.6 million) respectively.

"The Finance Ministry recommended the RM1.604 billion tender from
Eurocopter," he said.

On the lack of physical evaluation on the helicopters, Azmi said, the
Defence Ministry had explained that it did not carry out any test flights as the
Eurocopters were already being used in several countries.

"In fact, local pilots had tested the EC725. Based on this experience, they
felt that it was not necessary to carry out test flights," he said.

Azmi said that the PAC would suggest to the Defence Ministry to carry out a
detailed physical evaluation on the aircraft when the purchase had been
finalised.

Asked why the government did not choose the lowest package, he said it was
because it did not meet the requirement.

He also said that the price quoted in the Eurocopter tender was only valid
until February next year, afterwhich it would be up to the supplier whether to
offer the same price or renegotiate the offer.

On the statement by opposition Democratic Action Party (DAP) advisor Lim
Kit Siang questioning the rationale for the new helicopters when the Nuri could
still be upgraded, Azmi said that bigger expenses would be needed to upgrade the
ageing aircraft.

"There are things which the Nuris are lacking. They cannot do night flight,
they have no autopilot... all these can be overcome by acquiring new
helicopters," he said.

Asked if there were rooms for the Anti-Corruption Agency (ACA) to
investigate the deal, Azmi said, "It is up to the ACA. As far as we are
concerned, that is what we see in terms of the procedure."

He said that the PAC would continue scrutinising the deal.

Meanwhile, Azmi suggested that the government set up an independent panel
to
monitor purchases which involve huge expenses.

This was to rectify any weaknesses and to assure the people that the deals
were carried out in a transparent manner and without wastage.

"It is up to the government to determine the panel's membership. This is
not
only for puchases made under the Defence Ministry but also for all ministries,"
he said.
-- BERNAMA