PAC says no hanky-panky in Eurocopter deal

By Debra Chong

KUALA LUMPUR, Dec 16 — The Public Accounts Committee (PAC) has officially cleared the federal government of wrongdoing in its plan to buy new military helicopters after weeks of delay.

The parliamentary body notes that the government did follow the standard guidelines set by the Asia-Pacific Economic Cooperation (Apec) on trade deals when it arranged to buy 12 Cougar EC725 helicopters from Eurocopter.

However, it also notes that there were many more things it could have done to make sure the deal was favourable to Malaysia.

At the top of a laundry list forwarded to Parliament for further action, the PAC advises the government to set up an “independent review panel” consisting of experts in fields related to the aircraft industry.

It says such a committee would be in a better position to advise the government on whether it had got a deal that was “value for money”.

The PAC had been told by senior officials in the Defence Ministry, while investigating the helicopter scandal, that the military needs of one country was different from another’s.

It adds that the members should be selected by the Economic Planning Unit within the Prime Minister’s Department.

The PAC is “uncomfortable” that no flight tests and physical evaluations were ever done on the helicopter model despite assurances from the Defence Ministry.

They claim that a Royal Malaysian Air Force pilot has been testing out various helicopters since 1994.

The PAC, however, wants the Defence Ministry to conduct specific test flights and full physical tests before buying any aircraft in future.

With regards to the Eurocopter, which is to replace the ageing fleet of Nuri helicopters, it wants the ministry to do a detailed survey and inspection before closing the deal.

It notes that the government urgently needed to close the deal in the next four years as the Nuris are safe only for the next seven years.

It advised them to pay the helicopter supplier in stages and to check the aircraft again, including taking a test-flight, before making the last payment.

The PAC asked the government to renegotiate the deal based on market prices and to include the Attorney General while doing so to make sure the terms protected government’s interests.

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