Najib must show leadership by example
Published: Sep 10, 2007 3:52 PM | Updated: Jan 29, 2008 6:21 PM
An opposition leader today urged Deputy Prime Minister Najib Razak to show leadership by example.
An opposition leader wants the deputy premier, who is also the defence minister, to explain the RM6.75 billion OPV scandal.
An opposition leader today urged Deputy Prime Minister Najib Razak to show leadership by example.
To do this, DAP secretary-general Lim Guan Eng said the deputy premier must follow his own advice that ministries must answer fund mismanagement and misuse disclosed in the Auditor-General's 2006 Report.
In a press statement, he urged Najib, who is also the defence minister, to explain the RM6.75 billion scandal of six Offshore Patrol Vessels (OPV) that have either not been delivered or not operational.
"He must explain why the contract price was allowed to increase twice from RM4.9 billion to RM6.75 billion or 38 percent even though the OPVs were either not delivered or not operational.
"The RM6.75 billion OPV scandal is the largest single case of misuse of funds in the 2006 Auditor-General's Report," he added.
Lim said six OPVs were ordered initially at RM4.9 billion. This was subsequently increased to RM5.35 billion in September 1998. All the six OPVs were supposed to be delivered by April 2007 with the first delivery on March 2004.
However, he added, only two OPVs were delivered so far and the two were not fully operational as the technical specifications required were still not completely performed.
"A penalty of 0.5 percent per month based on the contract value is imposed for any delay. But such penalties cannot exceed RM53.5 million, a very generous self-imposed limit by the government.
"The first OPV was late by 27 months and the second OPV was late by 18 months but yet both are imposed penalties of RM53.5 million each due to the self-imposed limit," he noted.
Full-fledged inquiry
The Auditor-General Report estimated that the government can claim at least RM214 million in penalties for the late delivery of the two OPVs and non-delivery of the remaining four.
"However, in another remarkable and unwarranted act of charity and generosity, the cabinet last November waived the claim of penalties.
"Worse, in a continuing act of generosity and charity the government increased the contract price by RM1.4 billion in January 2007," said the opposition leader.
He said the defence minister must explain why the government had surrendered and waived its claim for late penalties.
"More importantly, why is the government continuing to throw money to the contractor even though they have failed to perform and deliver on their contracts?" he asked.
The most shocking aspect, according to him, is that Najib must explain why the Defence Ministry paid in advance RM4.26 billion to the contractor by December last year when the progress of the work done only amounted to RM2.87 billion.
"Would not the government lose RM1.4 billion should the contractor abscond? Such behaviour is not only reckless, imprudent but also irresponsible," he said, adding that a full-fledged inquiry was necessary.
To do this, DAP secretary-general Lim Guan Eng said the deputy premier must follow his own advice that ministries must answer fund mismanagement and misuse disclosed in the Auditor-General's 2006 Report. In a press statement, he urged Najib, who is also the defence minister, to explain the RM6.75 billion scandal of six Offshore Patrol Vessels (OPV) that have either not been delivered or not operational.
"He must explain why the contract price was allowed to increase twice from RM4.9 billion to RM6.75 billion or 38 percent even though the OPVs were either not delivered or not operational.
"The RM6.75 billion OPV scandal is the largest single case of misuse of funds in the 2006 Auditor-General's Report," he added.
Lim said six OPVs were ordered initially at RM4.9 billion. This was subsequently increased to RM5.35 billion in September 1998. All the six OPVs were supposed to be delivered by April 2007 with the first delivery on March 2004.
However, he added, only two OPVs were delivered so far and the two were not fully operational as the technical specifications required were still not completely performed.
"A penalty of 0.5 percent per month based on the contract value is imposed for any delay. But such penalties cannot exceed RM53.5 million, a very generous self-imposed limit by the government.
"The first OPV was late by 27 months and the second OPV was late by 18 months but yet both are imposed penalties of RM53.5 million each due to the self-imposed limit," he noted.
Full-fledged inquiry
The Auditor-General Report estimated that the government can claim at least RM214 million in penalties for the late delivery of the two OPVs and non-delivery of the remaining four.
"However, in another remarkable and unwarranted act of charity and generosity, the cabinet last November waived the claim of penalties.
"Worse, in a continuing act of generosity and charity the government increased the contract price by RM1.4 billion in January 2007," said the opposition leader.
He said the defence minister must explain why the government had surrendered and waived its claim for late penalties.
"More importantly, why is the government continuing to throw money to the contractor even though they have failed to perform and deliver on their contracts?" he asked.
The most shocking aspect, according to him, is that Najib must explain why the Defence Ministry paid in advance RM4.26 billion to the contractor by December last year when the progress of the work done only amounted to RM2.87 billion.
"Would not the government lose RM1.4 billion should the contractor abscond? Such behaviour is not only reckless, imprudent but also irresponsible," he said, adding that a full-fledged inquiry was necessary.
View Comments0