Wrong Eurocopter price now 'academic'

Prime Minister Abdullah Ahmad Badawi has apologised for his mistake when citing the cost of the Eurocopter helicopters purchase, but added that the dispute over the figures is “academic” as the deal had been put off.

On Tuesday, Abdullah had said that the purchase price for the 12 Cougar EC725 helicopters was RM1.7 billion, and not RM2.3 billion as reported earlier.

He said today that the price that he should have quoted was RM1.607 billion, but because he was informed the figure was RM1.67, he had decided it should be rounded up.

“The price yesterday when I issued the statement was RM1.7 billion. That was a mistake. I apologise. The officials put it at RM1.67. I said we can round up the figure to RM1.7. That was what I said and you took that figure,” he told a press conference in Parliament today.

Correct figure is RM1.607 billion

However, Abdullah clarified further that the figure should have been RM1.607 billion.

“This morning when I was at (Ministry of Defence) Mindef, I was informed that the figure was wrong. Actually, it was RM1.607 (billion),” he added.

He went on to say that the differences in the figures over the deal is “academic”.

“When we decide later on to negotiate for the purchase of the helicopters, when we feel it is time to do that (and) when we feel there is money to do it, we’ll negotiate and see what the price is going to be,” said Abdullah, who is also defence minister.

“It is technical and academic to argue about the price at this moment, especially when a decision has been made that we will postpone the purchase of the helicopters,” he added.

Earlier today, Deputy Defence Minister Abu Seman Yusop in his winding-up speech clarified that another figure - cited by the ministry’s secretary-general Abu Bakar Abdullah last week - was mistaken in that the RM1.1 billion quoted did not take into account the RM500 million derived from services charges and the ‘offset package’.

Asked whether it was true that a deferment of the Eurocopter purchase by more than 12 months would result in a different price altogether, Abdullah said it cannot currently be determined what the price would be at that time.

“Whatever it is, you still have to negotiate. That is the estimated (cost),” he said.

Also present was Deputy Prime Minister Najib Abdul Razak, who addressed questions raised by the opposition earlier today in the Dewan Rakyat as to whether there was a physical inspection of the helicopters before the letter of intent was awarded to Eurocopter.

Abu Seman had said the ministry’s technical committee had decided to buy the 12 helicopters based on documents alone.

His revelation sparked an uproar in the House and prompted several Pakatan Rakyat MPs, led by Opposition Leader Anwar Ibrahim, to ask: “How is it that a government procurement as big as this did not undergo any physical inspection?

“I have eight years of experience as finance minister and we have never make procurements without first inspecting (the items),” thundered Anwar.

Proven helicopter

Najib, however, said the said helicopters are “proven” aircraft that have already been used by such nations as France and has “combat experience” in Afghanistan.

“The helicopter is a proven machine. It’s already in service, used by a few nations, including France. and has seen combat experience in Afghanistan.

"Our pilots who will fly the helicopters had tried them in (Langkawi International Maritime and Aerospace Exhibition) Lima, so they know about the performance of the helicopter.

“Before we confirm the sale, normally we can go for pre-delivery inspection. That’s when the helicopter is thoroughly examined. There’s nothing unusual about what we have done,” he said.

“It’s not an experimental or a helicopter that has not been tested. It has been tested, even in combat situations. They are making a big deal out of that as usual,” he added.

To calls for the defence minister himself to reply to questions in Dewan Rakyat as opposed to Abu Seman, Najib said: “It doesn’t matter whether it’s a deputy minister. Somebody from the government speaks on behalf of the ministry.”

When Najib was asked whether he would clear the area with regards to the unanswered questions surrounding the scandal as he was the defence minister when the deal was initially inked, Abdullah came to the fore to answer for him:

“Well, I’m sure ... the matter will be brought up again when we go into the committee stage (of the supply bill). I am sure, I can bet you, that people will raise it up again. We’ll reply and give the clearest explanation,” said Abdullah.