Monday, October 28, 2013

Transparency Is There, But Do You Check Before You Allege?

Just as a social experiment. I has listed the announced systems purchased for the SGPV/LCS in my military forum but despite linking the site where the official announcements were made, I understand that in some forums some 'wise' forumers has gone ballistic by saying that the amount we are paying is too much for the systems listed based on the program price.

I wonder if they checked out the KLSE Announcements page where the purchase prices for the systems was announced before shooting off that the project is overpriced.

These are the official figures that I mined from the official announcements.

1. BAE Systems Bofors Medium Calibre Gun 57 Mk3 with Stealth Cupola complete with simulator and ammunition range table = Swedish Krona Three Hundred Seventy Five Million (SEK375,000,000), which is equivalent to Ringgit Malaysia One Hundred Eighty Two Million Two Hundred and Fifty Thousand (RM182,250,000). ==> source

2. Contracts for Thales : ===> source

(i) Thales Underwater Systems CAPTAS Towed Array Sonar complete with simulators 287,019,200.00
(ii) Thales Nederland BV SMART-S Main Surveillance Radar with simulators 227,970,252.00

3.  to supply MSI Defence Systems Limited 30mm Small Calibre Guns for the LCS Programme (“the Awarded Works”) at a total value of GBP17,290,916 (Great Britain Pounds Seventeen Million Two Hundred Ninty Thousand Nine Hundred and Sixteen) equivalent to RM87,729,508 at 28 Oct. 2013 Exchange Rate : ===> source

4. to procure, engineer and integrate into the DCNS SETIS Combat Management System, a Combined Integrated Communication System and Communication ESM System ("the Awarded Works") at a total value of RM203,796,392.58 : ==> source

5. to undertake procurement, engineering and integration of additional equipment and facilities for the DCNS SETIS Combat Management System ("the Awarded Works")  at a total value of RM305 million: ===> source

6.  to undertake engineering and integration works in connection with the DCNS SETIS Combat Management System (‘the CMS”),  together with procurement of the CMS and the Rheinmetall Fire Control System (“the Awarded Works”) at a total ceiling contract sum of RM1.532 billion : ==> source

Taking into account the figures given, the systems value of the amount purchase officially announced already touched RM2.825 billion out of the total contract value where many more system prices are yet to be announced. 

So how can you say something is overpriced when you still do not know the whole total cost breakdown, I ask you. As usual somebody did not do their homework before shooting off their mouths.


Anonymous said...

The thing is these same f****rs are hell bent on sabotaging every single effort made at improving the MAF.

I hope our youngsters, the future voters will be aware of these descendent of the Min Yuen strategy in weakening the present Malay led Gov. They tried and failed the first time 50 - 60 years ago. They are trying again with a different strategy.


Anonymous said...

Why it always has to be about race? No wonder other race don't want to join the armed forces.

DBR said...


So far, MAF's development budget averages RM3 billion per year (2011-2014). Considering Mindef's ever growing opex, the G's plan to have balance budget by 2020 and elections in 2017/2018 (hence the need for "rakyat friendly" budget in 2015-2016), I dont forsee MAF development exp to increase by much in the coming years.

Which means that the RM9 billion LCS project is equal to about 3 whole years of ATM's development budget. This is assuming the project doesnt go over-budget like many other projects.

And if we add the LCS with the other mega project that is the AV-8 (RM7.55 B), the result will be not much left in the bank for other things.

I expect the next big MAF procurement (such as MRCA) to happen only in 2018-2019.

Anyway, just my 2 sen comment. Nice blog.

mumuchi said...

To be frank, many of the MAF development expenditure are either in the Malaysian 5 year plan or under OSA documents where maybe the MPs are the only priveleged civilians to have access to. To me the amount stated are just confirmation of the amount to be released for the 10MP expenditures in budget 2014 as the amount will not be released in one go as some may think.

DBR said...

The Malaysia Plan budget are disbursed annually in the form of development expenditure in the annual federal budget. Hence, the 10 MP budget are disbursed in the federal budgets between 2011-215.

Mega projects like LCS and AV-8 will span 2 Malaysia Plans.

Anonymous said...

Please look at the Auditor General report. If all those "ketirisan" being stopped then maybe MAF will have the fund to procure!!.