MINDEF SPENDS US$1.2 BILLION ON DIRECT NEGOTIATION PURCHASES

KUALA LUMPUR, March 4 (Bernama) -- The Malaysian Defence Ministry spent a
total of RM4.392 billion (US$1.2 billion) (US$1=RM3.72) on 100 purchases which
were made through direct negotiations, representing 20.95 per cent of the total
of 477 acquisitions worth RM8.116 billion made last year.

Its minister, Abdullah Ahmad Badawi said that in 2006 the
ministry made 609 acquisitions worth RM6.726 billion and of the total, 52
purchases (8.54 per cent) worth RM2.113 billion were made through direct
negotiations.

"In 2007, the Defence Ministry made 497 purchases worth RM5.119 billion. Of
this total, 95 purchases worth RM1.686 billion were made through direct
negotiations. This represented 19.11 per cent of the total purchases made in
2007," he said.

He said this in his written reply to Tian Chua, an opposition MP in the
Lower House of Parliament Tuesday. Tian Chua wanted to know the total value of
purchases or projects carried out by the Defence Ministry from 2006 until last
year.

Abdullah said overall purchases carried out through direct negotiations
totalled 247 or 15.6 per cent of the 1,583 purchases handled by the Defence
Ministry.

He said acquisitions made through direct negotiations were those that
involved security equipments or certain strategic projects which must be kept
confidential such as the purchase of weaponry systems.

-- BERNAMA