Top defence firms rank low in anti-graft measures
(The Malaysian Insider) – Two top Malaysian defence companies, Boustead Naval Shipyard Sdn Bhd and the Sapura Group, received low scores in the 2012 Defence Companies Anti-Corruption Index by Transparency International UK. They scored 2.94 and 13.24 respectively, out of 100.
The index measured worldwide a total of 129 defence companies’ vulnerability to corruption in 34 categories. For each category, two scores were given, one based on publicly available information and the other on self-reported details.
Boustead Naval Shipyard won a RM9 billion deal in late 2011 from the Royal Malaysian Navy (TLDM) to build and deliver six second-generation patrol vessels/littoral combat ships (LCS), due in 2017. The shipbuilder is part of a business empire owned by the Armed Forces Provident Fund (LTAT).
The purchase was criticised by the opposition, especially the DAP’s Petaling Jaya Utara MP Tony Pua, who asked how the price tag had jumped up from RM6 billion. DCNS S.A., the French naval defence company linked with the RM9 billion TLDM contract, scored 30.88 on the index.
The Ministry of Defence (Mindef) awarded a unit of the Sapura Group a RM2 billion contract last year for Network Centric Operations (NCO). PKR vice-presidents Nurul Izzah Anwar and Chua Tian Chang have both questioned the project’s lack of a roadmap.
The Sapura Group has been embroiled in a family feud early this year after a legal challenge were filed in the High Court. Patriarch Tan Sri Shamsuddin Kadir is demanding that his two sons return shares and properties valued up to RM450 million.
Scores were awarded in the Transparency International UK index across five sections, with marks awarded for evidence of anti-corruption in leadership, personnel, policies, training and risk management.
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