Malaysia's 40 SM-39 Block 2 Missiles and 30 Black Shark Torpedoes Overpaid ?

28 Juni 2010

SM-39 Exocet (photo : MBDA)

Tian Chua wants emergency motion on Scorpene missiles

KUALA LUMPUR, — PKR’s Chua Tian Chang today demanded that Parliament hold an emergency motion to discuss the acquisition of two types of missiles for the two Scorpene submarines Malaysia had purchased.

Chua claimed that Malaysia had overpaid for the purchase of 40 SM 39 Exocet Block 2 missiles and 30 Black Shark torpedoes.

Citing payment figures from Pakistan and Portugal, Chua said that Malaysia had paid 20 per cent more than the original market value of the two missiles.

“Based on the acquisition records by the Pakistan government the SM39 missiles only cost €3.07 million (RM12.26 million) per unit while the acquisition records by Portugal show that the Black Shark torpedoes only cost €2 million per unit.

“After calculations were made, the total market price costs of the two types of missiles amounted to €182.8 million. But the Malaysian government’s cost of purchase is €219.265 million. This means that the government had overpaid 20 per cent (€36.465 million) compared to the market price,” said Chua.

The Batu MP said that he had sent a notice letter earlier today to the Dewan Rakyat speaker regarding the matter.

He also questioned the delay in the delivery of the missiles.

Blackshark torpedoes (photo : sousmarin)

“The missiles should have been received sometime between 2008 and 2009 but till today the Malaysian government has yet to receive it.

“Also the warranty for the submarines have expired. The expiry date is in May 2010. After May, there is no warranty. The missiles have not arrived,” said Chua.

Another PKR MP, William Leong said that the MACC (Malaysian Anti-Corruption Commission) should conduct an independent investigation into the acquisition of the Scorpene submarines.

“The French authorities have raided DCN, which has had a history of bribing and paying government officials to secure projects.

“Why has the Malaysian government not done anything when the French government have?” said the Selayang MP.

The Defence Ministry revealed last week that it had spent a total of RM6.7 billion on the purchase of two Scorpene submarines.

In a written reply to PKR MP Chua Tian Chang, the ministry stated that the acquisition was completed last year, during the 2009 LIMA exhibition.

The reply listed down the cost of the two submarines as well as the price of buying 40 SM-39 Block 2 torpedoes from France and 30 Black Shark torpedoes from Italy.

According to the ministry, the purchase of two Scorpene submarines cost €1.084 billion, while the cost of the submarine “support and test” equipment amounted to €37.5 million.

The total cost of the torpedoes amounted to €219.265 million.

(The Malaysian Insider)