2 firms, 2 Scorpenes and a path of death and corruption

French naval ship builder DCNS seems to be a favourite of the Malaysian Defence Ministry and is lead consultant for Malaysia’s own upstart company to build naval vessels - Boustead Naval Shipyard Sdn Bhd.

Boustead Naval Shipyard (BNS) is a young start-up, which had its beginnings as PSC-Naval Dockyard (a sub-company of Penang Shipbuilding Corporation).

It was in 2005, after the Public Accounts Committee (PAC) brought to light gross management irregularities in PSC-Naval Dockyard's handling of the building and delivery of the New Generation Patrol Vessels (NGPV) for the Royal Malaysian Navy, that a major revamp was put into place to salvage the NGPV project.

Under the intervention of the Malaysian Government, a new management team was put in place and the project was revived. Boustead Holding Bhd, also a GLC, took up a 37% stake in PSC, becoming the single largest shareholder. As a division of PSC, PSC-ND therefore merged into Boustead Holding Bhd and renamed under Boustead Naval Shipyard Sdn Bhd.

Gross mismanagement

As the only naval shipyard company in Malaysia, Boustead, was first linked to allegations of irregularities when an opposition lawmaker claimed the government was paying Boustead 870% more than market price for six offshore patrol vessels (OPVs) for RM6 billion.

The exuberant price for the OPVs can be traced back to the findings of the PAC when investigating PSC-ND. The PAC claimed that RM120mil would be needed to salvage the first two OPV vessels, and that the Government also needed to pump in at least RM80mil to pay off local vendors, suppliers and contractors.

Reports of nonpayment to some 40 sub contractors who were owed RM180 million surfaced along with news that PSC-ND had also failed to remit some RM4 million in contributions to the Employees Provident Fund (EPF), the Inland Revenue Board and the National Co-operative Organisation despite having made salary deductions from its 1,500 staff. PSC-ND has also reportedly sought another advance of 1.8 billion ringgit from the government to complete the vessels.

Under the management of Boustead, these issues were seemingly solved and two vessels were delivered and accepted by the Royal Malaysian Navy in 2006.

In charge of upkeeping the Scorpenes

Boustead is also charge with the upkeep of the two Scorpene submarines purchased from French naval ship builders DCNS. Again Boustead is mired in controversy when the cost of maintenance of the two submarines were not factored into the budget when acquiring the two subs.

The initial maintenance cost, according to the Defence Minister in June of 2011, by Boustead stood at RM50 million/year for 6 years - apparently that figure was only an estimate. The actual cost would be RM417 million in total. An increase of RM117 million from its original RM300 million price tag.

In July 2011, the Defence Ministry received an additional RM493.3 million in allocations, which would go to maintaining the country’s two Scorpene submarines. The additional amount raises the ministry’s total budget to whopping total of RM11 billion.

Allegation have now surfaced that French DCNS and Boustead have received a contract to build patrol vessels worth RM10 billion. The patrol boats are to be built in Perak by Boustead with full supervision by DCNS. Owing to Boustead’s past experience, there is no surprise if the initial price of RM10 billion would escalate and cost tax-payers more than announced.

Why the Malaysian government chooses to do business with DCN is a mystery, when DCN has been embroiled in its own corruption scandal since 1994.

A bad and violent record

DCN was already being investigated for corrupt practices involving retro-kickbacks in arms deals with Pakistan and the sale of frigates to Taiwan when they sold submarines to Malaysia. A fact that was largely ignored by, then Defence Minister, Najib Razak when he convinced Parliament to use taxpayers money to purchase two Scorpene submarines from DCNS for RM7 billion.

In 2002, a car bomb in Karachi killed 11 French nationals who were working on a joint Franco-Pakistani project to build three Agosta 90B class submarines. The 11 were all DCNS employees and though initially reported as a terrorist attack, another version of the story surfaced in 2009, following the investigation of Judge Marc Trévidic.

In a note dated 2002, a former French secret service, ex-officer of the Directorate for Territorial Surveillance (DST), Claude Thevenet said that the Karachi attack was related to a case of retro-commissions and kickbacks involving the Pakistani state and French politicians for an arms deal. The attack was in reality “punishment” by corrupt Pakistani officials against France, following the cessation of payments of commissions by Jacques Chirac in 1996.

The depth of the DCN commission scandal in the Pakistan arms deal is immense and took a sensitive turn when in June 2010, a police report filed in Luxembourg, named Nicolas Sarkozy as having been the architect of the covert funding mechanism for the retro-commissions in 1994 while he was minister of the budget. Nicolas Sarkozy is the current French President.

SUARAM became suspicious

In Malaysia, Suaram’s suspicions arose as it studied the scandals involving DCN and it began enquiring about the possibility of pursuing the commissions involved in the Scorpene deal amounting to 114 million euro (RM500 million) to Perimekar Sdn Bhd, a subsidiary of KS Ombak Laut Sdn Bhd, of which the wife of Najib’s aide Abdul Razak Baginda is a principal shareholder.

It was at this juncture that Suaram approached William Bourdon, who was pursuing the corruption case against DCNS within the French judiciary system, who took an interest in DCN’s dealings with Malaysia. Suaram commissioned him to pursue a case for the commissions paid out to Perimekar Sdn Bhd.

Suaram applied through its French lawyers as a civil party for a judicial review in the French court in November 2009 to investigate the submarine deal. In April 2010, the French courts accepted the request to investigate Suaram’s claim of corruption. The French investigative judge who will hear the case will be picked next month.

Somewhere at the bottom is Altantuya

The deportation of William Bourdon from Kuala Lumpur in July, was a sure sign that Najib and his administration were desperate to cover up there involvement in the commission scandal and links to the murder of Mongolian national, Altantuya Shaariibuu.

The mechanisms for abuse and corruption are in place. Boustead by virtue of being the sole naval shipyard in Malaysia stand to milk the country’s coffers dry by servicing the two Scorpene submarines. A joint partnership with DCNS to build more naval vessels would mean more money being siphoned into meaningless defence endeavours, money that could have gone to better use in developing Malaysia.

Meanwhile, the French prosecution is ready to go on full trial over the submarine fiasco that could see Prime Minister Najib Razak called to testify before the French court. And along with the truth behind the commissions, we may also finally learn what truly happened in the murder of Altantuya Shaariibuu.

- Malaysia Chronicle

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Mindef says RM 493.3m additional budget necessary to ‘maintain’ Scorpene subs

KUALA LUMPUR, Aug 2 — The Defence Ministry received an additional RM493.3 million allocation this year, and said today the amount was needed to maintain the country’s two Scorpene submarines.

The additional amount raises the ministry’s total budget to whopping total of RM11 billion.

“The main purpose is to maintain our Scorpene submarines as that expense was not included in the budget,” The Star quoted Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi (picture) as saying.

The purchase of Malaysia’s RM7 billion Scorpene submarines has been a subject of wide controversy, after authorities deported a French lawyer who has been pursuing judicial investigations into the matter in the French courts, the day after he spoke on the issue in Penang.

Pakatan Rakyat (PR) MPs have accused the Najib administration of wanting to keep the facts hidden in the purchase of the submarines from French defence firm DCNS and up to RM16 billion in defence deals over the past three years.

The purchase of two submarines from French defence company DCNS in 2002 was made when Datuk Seri Najib Razak was still defence minister and a company run by Abdul Razak Baginda, said to be a close aide of the then-deputy prime minister, was reported to have received commissions of over RM500 million from the deal.

Human rights groups and opposition parties here also linked the episode to the 2006 murder of Mongolian Altantuya Shaariibuu.

In December 2009, Suaram filed a complaint with the French courts asking for access to information regarding government contracts signed with Abdul Razak’s Perimekar Sdn Bhd and other information classified as official secrets in Malaysia.

The French courts accepted the request to investigate claims of graft in the RM500 million payment from DCNS to Perimekar.

French lawyer William Bourdon had arrived in Kuala Lumpur on July 23 from Penang, where he spoke at a fundraiser organised by rights group Suaram regarding the Scorpene submarine deal but was prevented from speaking at further events when immigration officers boarded his plane and detained him before deporting him the same night.

Taken from Malaysian Insider

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The French Connection

SATIRE The recent deportation of French Lawyer William Bourdon has caused a stir in Malaysian political circles, with everyone cocking their ears, awaiting the next showdown, with the gathering of ominous dark clouds brewing into a giant storm.

Home Minister Hishammuddin Hussein came up with a statement that William Bourdon was deported due to a visa violation. “There are certain things tourists cannot do. I don’t know what it is, but one cannot give a speech. People get deported everyday, but people have selectively chosen this case to say that it is political,” he said, reiterating that there was not any political agenda in the deportation of French human rights lawyer.

Let's do a flip today. Let's take Hisham's word as good. Malaysians should stop speculating about the French lawyer's case. There is nothing suspicious about his deportation. Bourdon should know better than to make a speech. Speeches need a Police Permit and a Work Visa in this country. You cannot blame the government for deporting him.

Did Prime Minister Najib Razak once say he was afraid Bourdon might expose him in the Scorpenes-Altantuya cases? Exactly! So, why should we speculate? News about the Scorpene submarines kickbacks and the millions of ringgit in commissions are simply too far-fetched. Nobody does business like this, especially our Cabinet ministers in UMNO. They would never do it, that's for sure. They have been trained too well by our beloved former prime minister Dr Mahathir, whose Cekap Amanah Bersih slogan is still fresh in their minds. Anyway, what would a small-time lawyer know about French-made Scorpene stealth submarines?

Also, what is wrong for Perimekar to accept payment for a maintenance contract? Why question that Perimekar was set up just a short while before the submarines deal went through? Isn’t it normal for us to open a company, before we start doing business? Wny should anyone question whether it has any experience or know-how? This is the age of the outsource - Perimekar can subcontract the maintenance work to the Bangladeshi and Indonesian workers for a song and make a 99.9 per cent profit. Isn’t that good business acumen?

Even the Altantuya murder is quite a far-fetched plot. After an extensive search, no immigration records were found about her entering the country. Some said she was just an illegal immigrant unable to find work, and randomly picked Razak Baginda’s house to beg for alms before she got arrested. Someone even said she was a Mongolian Evelyn Salt terrorist that was trying to blow up the country. She unintentionally blew herself up while lighting a cigarette in the dark, forgetting she was carrying C4 in her other hand.

From war-submarine to illegal-migrant spy vessel

The Government’s decision to purchase the Scorpenes was a great decision. When the purchase was concluded way back in 2002, many countries immediately backed off from attempting an invasion of Malaysia.

But to the country’s dismay, the Scorpenes were found to be unsuitable for the shallow waters of the Straits of Malacca. Unable to perform optimally, the government decided to ship them off to Sabah, to guard the territorial waters of Sabah against illegal immigrants.

Operating a few feet below water, with its sophisticated periscope to scan Sabah waters, it can detect Illegal Boat people. With the press of a red button, it will shoot a torpedo in their direction to cause a big splash. Most illegal boat people will be too shocked to pedal towards Sabah and will U-turn immediately back to the Philippines and Indonesia.

If our navy runs out of torpedoes, even teargas or water cannons can be employed in the submarine’s arsenal. The deployment of the Scorpenes in Sabah will lower the immigrant population by a wide margin.

To counter the immediate security vacuum, the Defence Ministry now plans to acquire 10 naval patrol boats at a cost of only RM1 billion each, dirt cheap compared to the RM3.5 billion they paid for the second-hand Scorpenes. With the savings, they intend to purchase Eurofighter Typhoons to replace the fleet of 10 ageing MIG’s fighter jets. So Malaysia will be safe against any aggressive invasion from hostile countries like Singapore, Indonesia and Israel.

Mystery man who travelled with Baginda, Altantuya

Another far-fetched conspiracy theory that has emerged is that Bourdon was supposed to name the unidentified third person, who had travelled with Najib's buddy Razak Baginda and the late Altantuya Shaariibuu to Macau. Of course, we all know who that guy is, so why would the Home Ministry or Immigration Department want to make a fuss about it and draw attention all the way to those snooty US leaders in Washington by deporting Bourdon? Does it make sense?

To say that Bourdon was arrested is also completely untrue as they merely boarded the plane and detained him after the plane touched down at KLIA. It seems he abused his hospitality by refusing to sign his deportation papers written in the Malay language. How disrespectful of him is that? Now, that's a crime and if you don't believe us, askUtusan!

His schedule to speak at a fundraiser in Petaling Jaya and in Ipoh was a clear violation of his social visit pass. It doesn't matter it is not stated anywhere that he cannot do such a thing - as open his mouth and speak. The Malaysian government simply had no choice but to deport him. Seriously, we cannot have such gross violations as it may encourage millions more illegal French boat people to invade our shores in the hope of finding employment. Already, we have a big problem with Australia shipping all their illegal boat people to Malaysia.

So all this humbug about intriguing plots, involving stealth submarines, attractive secret Mongolian terrorists, high tech explosives like C4 and alleged commissions amounting to hundreds of millions ringgit is purely hogwash.

Mongolians…sorry, I meant Malaysians should avoid such far-fetched conspiracy plots and concentrate on the impending general election. At least for real is the biometric verification system for voters. A high tech 100% fool-proof and tamper-proof electronic gadget that by itself will exceed all the nine demands Bersih had insisted for a free and fair election. Or was it only eight?

Taken from Malaysian Chronicle

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Bourdon disputes minister’s claim (SCORPENE)

PETALING JAYA: Prominent French human rights lawyer William Bourdon is baffled to learn that his deportation is attributed to a violation of his social visa.

According to him, he never had such a visa in the first place.

Home Minister Hishammudin Hussein yesterday said that Bourdon, 55, was deported last Friday because he violated his social visa by giving a speech in Penang and insisted that there was no hidden political agenda.

“I don’t know what the minister is talking about because I didn’t even have a social visa. So it is very strange that he is speaking of one,” Bourdon told FMT in an interview from Paris.

His fiancee, Lea Forrestier, confirmed this in a later text message and added that citizens of the European Union do not need a visa for travel into Malaysia.

She also said that the only documentation Bourdon had filled up was a small card on which he had clearly specified that he was in Malaysia for “professional purposes”.

“My personal interpretation is that there is political motivation behind my deportation. There was no basis for the decision. And this is a very sensitive case for Malaysia,” Bourdon said.

Bourdon had first arrived in Penang on July 21 to speak at his client’s dinner on the controversial Scorpene submarine deal between Malaysia and France.

His speech at the Ops Scorpene fundraising dinner in Bayan Baru had reached – and burnt – government ears, for the lawyer, who was scheduled to give a talk here and in Ipoh, was detained by immigration authorites and sent home the next day.

His client, Suaram, had hired Bourdon in 2009 to file a case against French naval giant DCNS over irregularities in the Scorpene deal that allegedly involved millions of ringgit in kickbacks.

The French authorities are currently probing the deal, which was also linked to Prime Minister Najib Tun Razak and the murder of Mongolian national Altantuya Shaariibuu.

Taken from Free Malaysia Today

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Malaysia deports French lawyer fighting alleged corruption by shipmaker in submarine deal

KUALA LUMPUR, Malaysia — Malaysia deported a French lawyer who spoke about an upcoming corruption trial involving a $1.2 billion submarine deal that opposition leaders have sought to link to Malaysia’s prime minister, a human rights group said Saturday.

Malaysian authorities accused William Bourdon of unspecified immigration violations.

Bourdon spoke at a dinner in Malaysia’s northern Penang state Thursday about a French court case set for trial in September and had been scheduled to address a similar event in Kuala Lumpur late Saturday.

The case is linked to complaints filed by Malaysian rights group Suaram with a French prosecutor in 2009 alleging corruption in a 114 million euro ($164 million) fee that shipbuilder DCNS paid to Malaysian firm Perimekar Sdn. Bhd. to facilitate a submarine deal.

Prime Minister Najib Razak has denied any corruption. Najib was defense minister in 2002 when Malaysia ordered two diesel-electric Scorpene attack submarines as part of a naval upgrade. It has since received both the submarines.

Suaram said immigration officials detained Bourdon when he flew from Penang to Kuala Lumpur and put him on a plane to Paris shortly before midnight Saturday.

Bourdon told The Associated Press he was instructed to get a plane ticket home at his own expense. He said he told the officials that he didn’t understand the expulsion and that the decision lacks any justification.

“I told them I acted as a lawyer, in full respect of my duties and the rules of my profession, and in respect of international law and national laws,” he said in a phone interview before his deportation.

Malaysian Immigration Director General Alias Ahmad said in a statement that Bourdon “violated the terms of his social visit pass.” He did not elaborate, and other officials familiar with the matter could not immediately be reached.

In his talk Thursday, Bourdon gave an update about the status of the case, the French judicial system and what to expect from the trial. The Kuala Lumpur dinner event continued Saturday with speeches by Malaysian opposition leaders and a prerecorded video message by Bourdon.

Malaysian defense officials have said the fee was paid to Perimekar for coordination and support services. But critics argued that Perimekar was formed only a few months before the contract was inked, had no track record in submarine services and didn’t have the financial ability to support the contract.

Perimekar is owned by the wife of Abdul Razak Baginda, who once was Najib’s aide and a close friend.

Abdul Razak was acquitted in 2008 of abetting in the murder of his ex-mistress, a Mongolian woman. He confessed to having an affair with her and said she was blackmailing him. The woman was shot and her body blown up with military-grade explosives in October 2006.

Two policemen were convicted and sentenced to death for murdering the Mongolian. Suaram has said initial investigations by their French lawyers showed the Mongolian worked as a translator for Abdul Razak in the submarine deal.

___

Associated Press writer Pierre-Antoine Souchard contributed to this report from Paris.

Below is the link from Washington Post

http://www.washingtonpost.com/world/asia-pacific/malaysia-deports-french-lawyer-fighting-alleged-corruption-by-shipmaker-in-submarine-deal/2011/07/23/gIQAtVpiUI_story.html

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Malaysia deports French lawyer fighting alleged corruption by shipmaker in submarine deal

KUALA LUMPUR, Malaysia — Malaysia deported a French lawyer who spoke about an upcoming corruption trial involving a $1.2 billion submarine deal that opposition leaders have sought to link to Malaysia’s prime minister, a human rights group said Saturday.

Malaysian authorities accused William Bourdon of unspecified immigration violations.

Bourdon spoke at a dinner in Malaysia’s northern Penang state Thursday about a French court case set for trial in September and had been scheduled to address a similar event in Kuala Lumpur late Saturday.

The case is linked to complaints filed by Malaysian rights group Suaram with a French prosecutor in 2009 alleging corruption in a 114 million euro ($164 million) fee that shipbuilder DCNS paid to Malaysian firm Perimekar Sdn. Bhd. to facilitate a submarine deal.

Prime Minister Najib Razak has denied any corruption. Najib was defense minister in 2002 when Malaysia ordered two diesel-electric Scorpene attack submarines as part of a naval upgrade. It has since received both the submarines.

Suaram said immigration officials detained Bourdon when he flew from Penang to Kuala Lumpur and put him on a plane to Paris shortly before midnight Saturday.

Bourdon told The Associated Press he was instructed to get a plane ticket home at his own expense. He said he told the officials that he didn’t understand the expulsion and that the decision lacks any justification.

“I told them I acted as a lawyer, in full respect of my duties and the rules of my profession, and in respect of international law and national laws,” he said in a phone interview before his deportation.

Malaysian Immigration Director General Alias Ahmad said in a statement that Bourdon “violated the terms of his social visit pass.” He did not elaborate, and other officials familiar with the matter could not immediately be reached.

In his talk Thursday, Bourdon gave an update about the status of the case, the French judicial system and what to expect from the trial. The Kuala Lumpur dinner event continued Saturday with speeches by Malaysian opposition leaders and a prerecorded video message by Bourdon.

Malaysian defense officials have said the fee was paid to Perimekar for coordination and support services. But critics argued that Perimekar was formed only a few months before the contract was inked, had no track record in submarine services and didn’t have the financial ability to support the contract.

Perimekar is owned by the wife of Abdul Razak Baginda, who once was Najib’s aide and a close friend.

Abdul Razak was acquitted in 2008 of abetting in the murder of his ex-mistress, a Mongolian woman. He confessed to having an affair with her and said she was blackmailing him. The woman was shot and her body blown up with military-grade explosives in October 2006.

Two policemen were convicted and sentenced to death for murdering the Mongolian. Suaram has said initial investigations by their French lawyers showed the Mongolian worked as a translator for Abdul Razak in the submarine deal.

___

Associated Press writer Pierre-Antoine Souchard contributed to this report from Paris.

Below is the link by Washington Post.

http://www.washingtonpost.com/newssearch/search.html?st=malaysia&submit=Submit

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Hisham denies lawyer deported for raising Najib's Scorpene-Altantuya ties

Home Minister Hishammuddin Hussein denied the government's deportation of French lawyer William Bourdon was due to fear that he would reveal the latest findings on the Scorpene submarines and implicate Prime Minister Najib Razak for alleged corruption and graft in the RM7 billion acquisition.

According to Hisham, who is also Najib's cousin, "people get deported every day". And Bourdon was just a statistic.

“He broke the conditions of his visa. Because this is a high-profile case, people are selectively choosing to say it is political. People get deported every day,” Hisham told reporters on Monday.

“I don’t know what it is but certainly he cannot give a speech,” when pressed on what condition in the visa had been broken.

Hisham was immediately panned for lying and helping Najib to cover up the Scorpene scandal, which could open the Pandora's box to another mess that Najib has also been implicated in - the Altantuya Shariibuu murder.

""How could giving a speech breach visa conditions. What did Bourdon say that violated our laws and immigration regulations. We can in fact check back in his speech, which was taped. It was only modestly critical, no specific allegation except that more truth on the submarines kickbacks will emerge in due time. This indicates the Najib regime is running scared," PKR vice president Tian Chua told Malaysia Chronicle.

Be brave, Malaysians

Bourdon, a human rights lawyer and activist, was hired by top Malaysian NGO Suaram to file a complaint against the vendor of the submarines, French arms giant DCN. It is illegal in France to pay bribes to secure a deal and if found guilty DCN can be forced to pay compensation for overpricing the deal paid for by Malaysian taxpayers.

Also, in the course of the trial - due for open court hearing in September - the identities of those who accepted the kickbacks would have to be revealed. This would pressure the BN federal government to take action against the culprits, whereas, currently the Malaysian Anti-Corruption Commission has refused to investigate the allegations of bribery despite various parties lodging police complaints and even offering evidence of the kickbacks received.

Najib has denied all involvement and the government has termed a 114 million euros or RM570 million side-deal given to his friend Razak Baginda's Perimekar firm a co-ordination and maintence contract, although Perimekar has no track record at all in the submarines industry. The Najib administration has also ignored calls for any investigation.

Last week, Bourdon spoke at a dinner engagement in Penang, organised by Suaram to raise funds for the Parisian trial. He had flown in from Europe to Penang and was due to give two more briefings that would progressively impart greater details as to the personalities involved including a VIP believed to be Najib. He also had the latest information from the French police, who had uncovered fresh payments of commission from DCN to Malaysian parties.

Malevolence

However, Bourdon landed at the KLIA on Friday, immigration officers immediately boarded the plan amd detained for long hourse. At 11.30pm, he was put on a flight back to Paris.

As if sensing malevolence, Bourdin had in Penang urged Malaysians to be brave in their fight against top-level corruption. While in detention, he issued a statement and denied he had broken any laws.

"I have not violated any law in Malaysia and strongly protest my detention," Bourdon's statement written in French read.

"I do not understand the rationale of this detention; secondly, I have acted professionlly as Suaram's lawyer; and thirdly, I only came to explain the details of the Scorpenes lawsuit."

Najib, the defense minister at that time, had ordered the acquisition of the submarines abainst public outcry that the deal was too highly-priced and the high-tech submarines not suitable to Malaysia's shallow coatsline.

Taken from Malaysian Chronicle

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