by Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjung, Lim Kit Siang, in Penang on Sunday, March 6, 1994 after opening the Penang Tanjong 3 Conference:
DAP calls for White Paper on whether the Government had been overcharged for defence equipment bought through GEC’s Malaysian subsidiary GFC Marconi Projects Malaysia (GMPM)
The latest allegation in the London Times that the Malaysian Government had been overcharged for defence equipment bought through GEC Malaysia’s subsidiary GEC Marconi Projects Malaysia (GMPC) must be taken seriously by both the Government, Parliament and the people.
The London Times reported yesterday that documents obtained by the newspaper showed that the Malaysian Government had paid up to twice the going rate for radar and communications package which had been sold to GMPC for less than 100 million pound sterling and that defence, industry sources were surprised by the total cost to the Malaysian armed, forces.
GMPC, the Malaysian service company for GEC, also handled contracts for frigates, missiles, command and control systems, and radar equipment for Malaysia.
Last week, a British Member of Parliament asked about the excessive cost of frigates bought by Malaysia from the Yarrow shipyard, compared to the lower-priced and better-equipped ones built at the Swan Hunter shipyard.
As the Bernama report pointed out yesterday, the Malaysian Government bought frigates from Yarrow on the recommen¬dation of the British government, whose own frigates were bought from Swan Hunter.
DAP calls on the Government to issue a White Paper on whether the Government had been overcharged for defence equipment bought through GEC Malaysia’s subsidiary, GEC Marconi Projects Malaysia (GMPM), which should give a list of all the defence equipment which were bought through GMPM under the RM5 billion Malaysian arms deal with Britain, the prices paid for by Malaysia as compared to their market prices, the Malaysian parties- or individuals who had been alleged to have ripped off the Malaysian taxpayers by overcharging for the defence hardwares.
The RM5 billion Malaysian arms deal with Britain, the prices paid for each individual package, allegations of kickbacks and improprieties from the defence deals, the role of GEC Malaysia and GMPM and in particular the man behind the GSC Malaysia, Tan Sri Arumugam, would-be among the important topics in the next meeting of Parliament which would be opened by the Yang di Per-tuan Agong on April 11.