KUALA LUMPUR, Sept 9 — The seedy and allegedly corrupt side of Malaysia’s defence procurement has been laid bare in a US embassy cable, with startling revelations on how Umno politicians, agents, civil servants and military officials receive 30 per cent “commission” on deals.
In a note on the opaque procurement system here revealed by whistleblower site Wikileaks, the US embassy noted that American companies operating here had three main complaints about the system: the lack of transparency, outright corruption, and Bumiputera requirements.
The undated cable sent during the Abdullah administration between 2004 and 2009 also noted that many government tenders do not follow procurement rules.
A US aerospace executive told the US embassy here defence deals were done through shadowy agreements with no tendering process. For example, the then-Prime Minister Tun Abdullah Ahmad Badawi’s
(picture) sister-in-law arranged a US$400 million (RM1.2 billion) contract to buy military cargo aircraft from Airbus.
The deal was announced following Abdullah’s return from a trip to France.