Saturday, June 13, 2009

Let's Revisit The EC725 Purchase

A visitor named Reezo had left a message in my previous posting in this blog highlighting the details of the Brazilian purchase of their EC725 fleet. The main aspect of this report that attracts me is the fact that the purchase price of the fleet has been corrected and is now almost triple the original reported price as shown below :

June 30/08: Brazil and France sign an agreement in principle for Eurocopter to build helicopters in the South American country via its subsidiary Helibras. Brazil’s Defense Minister Nelson Jobim reportedly said that the country intended to buy 50 “Super Cougar” models, the first of which would be delivered in 2010. The deal’s value was initially reported as $1.2 billion, but reports put the signed contract at $2.7 million equivalent.
Now since this was the main weapon of the purchase opposition in their efforts to scuttle the EC725 purchase, this report nullifies the assertation that there seemed to be something wrong with Malaysia's own proposed purchase price for our EC725 fleet. I do not want to go into a unit price comparison as this will definitely be an apple to apple comparison even if the full specifications of the two helicopters can be obtained, but the fact remains that the price off-quoted by the opposition has now been proven wrong but it seems that this fact is somehow being hidden by the opposition and our purchase now remains in limbo, either because we really do not have the money to purchase the helicopters even though it has been budgetted for that the new Minister of Defence had to announce that the Ministry has to look at new and creative ways to finance the purchase, or that the whole matter is being kept in the back burner as a convenient conflict avoidance ploy.

In the meantime, Brazil has confirmed their order to become the first export customer followed recently by Mexico that bought six units for 168 million euros for a transport version of six units while France herself has placed EUR 220 million contract for 5 more EC725 Caracal helicopters for combat search and rescue, special forces, and medium utility roles. Compare this again with the Eurocopter's bid price of Euro233.3 million for 10-12 CSAR units to Malaysia and judge for yourself if there really is anything fishy with this tender as being claimed by the opposition to the helicopter purchase that ultimately will save not only the people to be rescued but the crew that operates the new helicopters.

10 comments:

Anonymous said...

Not being arrogance here, but I try to spread the fact in a correct way to as many people as I can. For the Cougar procurement, tax payers have all the right to be skeptical. However the procurement was halt by the party whom wants to avoid a political crisis. Regardless if the procurement was clean, or not. The tax payers is certainly the wrong person to be blamed.

mumuchi said...

I don't really get what you are trying to say but who has blamed the taxpayers? It is those who wants to gain political mileage at the expense of our service man that I personally blame here so if you believe that taxpayers are being blamed by my posts, maybe this is because I have hit close to the mark? Otherwise please try to understand what I am trying say eh?

Anonymous said...

I apologize for my periphrastic comment earlier.
It is an universal truth that tax payer have the right to question. However they need representative to voice for them in the parliament.
Opposition party for whatever motive they have behind, are doing the their job and fulfilling the role as the opposition in the debate, which is the core sprite of the parliament.
On other hand the party in the office, based on your hind should have a invulnerable position, inconceivably failed to response in a satisfying manner. Leading the procurement to be halted in the fiscal revision. And therefore if there is any mishap occur since the decision was made, the decision makers should be charge as guilty under premeditated murder crime.
Nonetheless the ruling party had a successful syllogism trick preventing a great deal of people from reaching the truth beyond the second stage of the feud. In return using it as a political weapon in expense of the real victim, our nation's servicemen.

mumuchi said...

riddle me diddle..oklah bro, i get what you are trying to say (most of it) despite it being so convulated..hope the rest do so bro..let's see if this mistake or premeditated crime as you call it can corrected by those people called the 'powers that be', on both sides of the divide.

Jeffrey Matisa said...

Taxpayers? Everyone is a taxpayer, even the servicemen.

So many taxpayers feel they have unbridled rights over what they do not understand after paying a meagre portion of their harvests.

Nobody disputes their right to question, but oft tmes the question betrays the mind and heart of the one who questions. Therefore the right to question also needs to be backed by sufficient intelligence, timely and accurate.

Soldiers are the expendible pawns in this ridiculous political argument of claimed idealism that teeters in the face of operational reality. Someone else has to pay for your argument. The breed of taxpayer who questions military procurement may never ever have to pay the price for peace.

I propose then that the next mishap due to persistently forcing aircrew into a dilapidated machine said taxpayer would never dream of boarding be upon the same's conscience.

Ya, mumuchi?

mumuchi said...

they have a conscience? hahahahhaha..

i personally believe that they will either say it is the gomen's fault, crew fault, ground crew fault or any other fallguy they can pin the blame, but never ever on them the 'conscience of the nation', vigilant against supposed wrongs in anything they can parlay into a political cause..

Jeffrey Matisa said...

Thank you, mumuchi.

Forgive me being miffed. I have seen people die.

mumuchi said...

Obviously. Though I am thankful that those I know who serves (d) have been luckier than most.

Anonymous said...

First of all we must understand this purchase is not a mere military helicopter purchase,it's a purchase of national importance,the role envisaged for workhorse Nuri replacement is of national importance one must agree.
Just because it's been brought up by the opposition (the name says it all),the previous admin chicken out,although the PAC could not find fault with the contracts.Alas,we're putting our Serviceman/woman at risk here,politician,sigh...I'm optimistic current Admin will restore it,regardless of what the other side have to say.

Anonymous said...

NST today Copter deal to be inked in December

2009/09/07


KUALA LUMPUR: Malaysia will acquire the Eurocopter EC-725 Cougar helicopters by the end of this year.

The agreement for eight or 10 Cougars would be signed at the Langkawi International Maritime and Aerospace 2009 show in December, a Defence Ministry source said.

The purchase price has yet to be confirmed. The aircraft will be delivered in stages from next year.

"The government feels there is an urgent need to replace the current fleet of Sikorsky S61-A4 Sea Kings, or Nuri, which has been in operation since 1969."


The planned purchase of 12 Cougars two years ago for RM1.6 billion was put off for financial reasons and the government said that it would buy the Cougar when it was economically feasible.