Certain records pertaining to the RM6.75 billion deal to purchase six offshore patrol vessels have been destroyed, according to Public Accounts Committee (PAC) chief Shahrir Abdul Samad.

Shahrir said PAC, which commenced investigations into the controversial deal since 2005, has not been able to get hold of sufficient company reports regarding the vessels.

"I am sure the records were destroyed," he told Malaysiakini during a two-hour interview at his office in Sri Hartamas, Kuala Lumpur, last week.

He claimed that the records destroyed involved the first two problem-ridden vessels, which were delivered to the Royal Malaysian Navy last year after a two-year delay.

The remaining vessels are still under construction and have since incurred at least RM1.4 billion in additional cost. This came under criticism in the Auditor-General's 2006 annual report.

Asked on whether the evidence gathered so far is adequate for the authorities to press charges in court, Shahrir replied: "We have to look for something else, (like) governmental records."

Shahrir's revelation followed calls for the deal - dubbed by the opposition as one of the biggest corruption scandals - to be scrapped.

The AG report released early this month raised several questions on the deal. Among others, it said there was "no justification" for the government to approve the extra RM1.4 billion and waiving RM214 million in penalties for late delivery that it was entitled to claim from the contractor.

The lucrative contract, with an initial price capped at RM5.35 billion, was awarded to PSC-Naval Dockyard Sdn Bhd - a subsidiary of PSC Industries Bhd owned by Umno associate Amin Shah Omar Shah - in 1998.

The company was renamed Boustead Naval Shipyard Sdn Bhd in August last year.

ECM Libra issue

On another high-profile PAC probe involving the merger of ECM Libra and Avenue Capital Resources Bhd, Shahrir said investigations hit an unexpected snag.

"He (Second Finance Minister Nor Mohamed Yakcop) came (before PAC). He was there to answer our questions but unfortunately, [pauses] no questions were asked," he said.

The powerful parliamentary committee, which is tasked to ensure that government funds are well-spent, also comprises opposition parliamentarians.

"I guided everybody to a point that anyone could have picked up from where the minutes left off but... nobody did. Why do I always have to do the work?" asked Shahrir.

The merger raised eyebrows after Umno Youth vice chief and Prime Minister Abdullah Ahmad Badawi's son-in-law Khairy Jamaluddin took a loan in 2005 to acquire a RM9.2 million three-percent stake in ECM Libra, an investment advisory group.

After this, the government approved a merger between ECM Libra and the government-owned financial services company Avenue Capital. The new entity was known as ECM Libra Avenue.

Following an outcry, Khairy relinquished all his shares in August last year. The PAC found that the merger was carried out according to procedure but has yet to conclude if there was any conflict of interest.

"My personal view is that there is no corruption but there is a case of conflict of interest and (can be) questionable," said Shahrir, who is also the MP for Johor Bahru.

He also pointed out that the matter aroused much public interest because it involved Khairy.

"You can't deny that this man (Khairy) is moving and doing well. He has taken all the knocks, whatever nasty stuff thrown at him, he has taken (them) and is going on as he wishes, according to his conviction and job," he added.


Q&A: Why must I do all the work?


Tomorrow: Elections: To run or not to run?

Part One

Shahrir: Judicial hangover from 1988 crisis
Q&A: 'No strong reasons to sack Salleh'

Watch the seven-minute video here.