Competition for Malaysian helicopter contract raises some important issues
Informal networking is a key in government contracts
A Royal Malaysian Air Force EC725—now known as the H225M. Credit: Chen Chuanren/Aviation Week
Competition for the helicopter market in Malaysia is ramping up with the arrival of a local newcomer backed by Airbus, which is upsetting the exclusive monopoly previously enjoyed by Leonardo's local partner, Weststar.
The Italian defence group will have to be patient before celebrating its new helicopter contract with the Malaysian government, which has been forced to delay the announcement of the RM 19.7 billion contract because of various obstacles.
These obstacles bring up two fundamental issues.
Putting Royal assets and business interests in ‘Royal Estates”
Where companies have royal equity holders, these companies’ management and shareholdings should be kept at arms length from the rulers. Rulers should not act for either directly or informally for these business interests.
In Thailand until 2018, business assets of the Royal family were kept under the Crown Property Bureau, which operated and managed assets, making all business decisions. This prevented the ruler from interfering in business and putting any pressure on tender decisions.
The upcoming helicopter business deal shows the need for such a system in Malaysia.
Civil servants declaring any conflict of interests in deals before the government and standing aside from the procurement process
With the recent appointment of Shamsul Azri Abu Bakar as the Chief Secretary of the federal government, civil servants must be forced to declare any conflict of interests with contracts under their purview.
The above helicopter contract will be Shamsul’s first test as chief secretary of the government.
This will indicate just how serious the new chief secretary and government is on preventing corruption and developing more transparency in government procurement processes.
Inside the government and civil service circles, informal networking is the key to getting things done. These informal networks extend to high corporate circles. Thus, the use of these informal networks to garner favors is endemic. This is almost impossible to stamp out, particularly if ethics and principle have been thrown out the window.
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This is the never ending story of Malaysia. Rotten to the core. Whether you are above the law or civil servant, greedy minds and fingers are foremost in all financial transactions. Our ships all paid for, have never appeared. What’s the point of showing great compassion for sick Palestinians when good governance at home cry out for help.
We've hardly anyone in Bolehland capable of thinking or making any decision over anything related to military procurement.
Any Mongolian interpreter and her pony can tell you that!
Or maybe she can't, she's just been shot and blown up with military explosive!
Never mind about the latest one about buying military stuff, they would be paid for using helicopter money.