Saturday, 11 October 2008

Sukhois again. Здравствуйте! ,privyet!, From Russia with Love

Sakmongkol has written an article on our purchase of the Sukhoi-SU 30MKI or SU 30MKM. Please read Sukhois and our air supremacy

It has attracted an answer from one Mr Shaftec, whom sakmongkol suspects is either from MINDEF or DPM’s staff.

Sakmongkol has asked his permission to reproduce his answer. But sakmongkol has not received any news from him. Sakmongkol wants to give his rejoinder nonetheless.

The relevant answer from Mr Shaftec was contained in the first few passages only. It is an attempt to justify why Malaysia spent USD50 million each on the Sukhoi. Which is basically the same as that bought by the Indian Air Force. The basic price of a Sukhoi is around USD30 million each.

As they say, hindsight is a 2020. after the fact, everyone gets wiser. We can cook up any grandfather stories to justify why we did the thing we did.

As to the voluminous technical explanation given, well Sakmongkol thinks this can easily be downloaded from the internet. Technical specifications for the Sukhoi are very extensive on the internet. Hence after downloading, all one needs to do is to regurgitate onto the blog.

The voluminous technical explanation, sakmongkol thinks is used to overwhelm people. It is just a ruse.

The idea of republishing Mr. Shaftec’s answer into the open instead of languishing as an appendage under the comments section, is to throw up debate on this subject.

Sakmongkol’s original post argued there may be grounds to suspect financial negligence and imprudence.

Mr Shaftec’s answer forgot or elected to leave out the fact that out of this Sukhoi deal, the former cry-baby minister, Adib Adam made a bundle from this deal. If there wasn’t enough meat to go around, how could Adib Adam then partake in the feast? Former Malacca chief minister Datuk Adib Adam, was paid a RM380mil commission.

The Sukhois deal, worth US$900 million (RM3.2 billion), was through a Russian state company, Federal State Unitary Enterprise 'Rosoboronexport' on May 19, 2003. IMT Defence Sdn. Bhd. was appointed the local agent for the Russian company and received 12 percent of the purchase price, US$108 million (RM380 million). The principal figure and chairman of IMT Defence is Mohamad Adib Adam, the former chief minister of Malacca, previous Land and Development Minister and a long-time UMNO stalwart.

Now if Adib Adam received a commission of USD108 million, that would mean that the unit cost of the 18 Sukhois is USD 44 million each.

Assuming the unit price of a basic Sukhoi is USD30million each, according to Mr. Shaftec’s argument, all the other specs and fixtures would cost USD14 million on each plane? These things, additional toys if you may, are not custom made for Malaysian Sukhois. These are obtainable from different manufacturers and are standard in nature. Surely, if they are standard, and are bought in bulk, we are entitled to bulk discounts? No?

So, it would seem that Mr. Shaftec’s argument crumble under the weight of the voluminous technical explanation.

6 comments:

Muhammad Azli Shukri 11 October 2008 17:14  

ini yang mengejutkan..salam singgah saudara.

Zahar 11 October 2008 17:30  

Sorry for the earlier error in my comment to the initial post on this topic when I wrote these were helicopters. In my defence, it was half past 4 in the a.m. and I was reading and replying from the small screen of my Blackberry. Thanks to erotomnia for pointing out my mistake. :)

Anyway, this new info that Adib Adam received some hefty payout out of this deal lends a new twist to this whole saga. IINM, this bit of information was not present in the first post?

After all is said and done, most if not all defence procurements will involve some sort of kickback. Even defence deals in the US are also laden with tales of such improprieties. But the existence of such improprieties does not make them right.

The onus is on the one who has the information to come forward and present the facts to the authorities so that action can be taken. Even if the cry is Oh cannot, this is Bolehland, nothing can ever happen here, the fact is the matter has been brought up for the authorities to take action. Even if they don't do anything, we have at least done our duty for God and country.

Anonymous,  11 October 2008 19:08  

nak buat camne.. tunggu aje la SURUHANJAYA PENCEGAHAN RASUAH yang akan di tubuhkan oleh pak lah sebelum dia bersara. Suruhanjaya ini akan menyiasat kes kes sperti saudara lapor kan... tsk tsk..
-CAM-

p/s agaknye duit banyak sangat tu dia buat ape, ek? Cencaluk kot...

Anonymous,  11 October 2008 19:33  

Ya betul tu, Suruhanjaya pencegahan rasuah tu nanti akan di pengerusikan oleh Datuk Kalimullah Hassan.

shahfudin 11 October 2008 19:42  

Dear Tuan Hj Ariff,

Assalamualaikum, I just got back from Hari raya Open House Do, thus the delay in answering your message.

I am not DPM Staff nor a member of MINDEF Entourage...This is a Private Citizen Comment.

Well item 1...

Sakmongkol’s original post argued there may be grounds to suspect financial negligence and imprudence.

OK I am no economist but comparatively if one would compare the price of a similar F-15, or a F-18 made in USA, the flyaway price of those aircrafts are in the range of USD 50 million.
So Su 30 MKM is cheaper than the US made one.

Item 2

Mr Shaftec’s answer forgot or elected to leave out the fact that out of this Sukhoi deal, the former cry-baby minister, Adib Adam made a bundle from this deal. If there wasn’t enough meat to go around, how could Adib Adam then partake in the feast? Former Malacca chief minister Datuk Adib Adam, was paid a RM380mil commission
The Sukhois deal, worth US$900 million (RM3.2 billion), was through a Russian state company, Federal State Unitary Enterprise 'Rosoboronexport' on May 19, 2003. IMT Defence Sdn. Bhd. was appointed the local agent for the Russian company and received 12 percent of the purchase price, US$108 million (RM380 million). The principal figure and chairman of IMT Defence is Mohamad Adib Adam, the former chief minister of Malacca, previous Land and Development Minister and a long-time UMNO stalwart.

Now if Adib Adam received a commission of USD108 million, that would mean that the unit cost of the 18 Sukhois is USD 44 million each.

Ok Since you have deducted the commision paid to the IMT Defence of USD 108 million leaving the amount for Rosoboron Export to Make Money USD 792 million.

Unfortunately Tuan Hj I mentioned that the price of the aircraft is approximately USD 30 million thus the total price of the aircarft is USD 540 million.

Leaving USD 252 million for the GSE, Spares, and Weapon.

Assuming the unit price of a basic Sukhoi is USD30million each, according to Mr. Shaftec’s argument, all the other specs and fixtures would cost USD14 million on each plane? These things, additional toys if you may, are not custom made for Malaysian Sukhois.

Dear Tuan Hj the additional Ground Support Equipment, Spare and Weapon that you calculates as USD 14 Million x 18 aircraft does not work in that manner.

Those equipments that I have mentioned are necessary items to operate and maintain these aircrafts. The analogy Tuan Hj is like you are buying the car without the service station to refuel, replenish, recharge and rearm.

These are obtainable from different manufacturers and are standard in nature. Surely, if they are standard, and are bought in bulk, we are entitled to bulk discounts? No?

Russians Tuan Hj are not like the Western Standard. This is what the country faced when they operated the MIG 29. Russian equipment does not fit with the NATO Standard. The Equipment are totally different. They use different power rating, different lubrication , different pressure. And for your information these aircraft even uses alcohol for cooling. (Russian like VODKA very much). Bulk Discounts On What?

Well my intention is to clarify with existing information not privy or falls under the secret act.

So, it would seem that Mr. Shaftec’s argument crumble under the weight of the voluminous technical explanation.

So be it Tuan Hj. I do not want to argue on Adib Adam's Commission.

Zawi 12 October 2008 06:57  

The obscene commission isn't something new. Many opposition MPs have shouted themselves hoarse and yet subsequent procuments of unneceessary arms are always loaded with hefty comissions. The toothless PAC is unable to do much as such immoral commissions are legally right.

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