SEREMBAN, Aug 23 — Prime Minister Datuk Seri Anwar Ibrahim said the country’s procurement system, particularly in the defence sector, must be conducted with full transparency and be free from any corrupt practices or commissions that could burden the nation.
Anwar, who is also Finance Minister, noted that in the past, military asset procurement often became a channel for companies and agents to earn excessive profits, resulting in losses for the country and weakening national defence capabilities.
He said as a country with impressive development and growth, the military procurement system still shows weaknesses despite high government expenditure, as seen in the case of the Littoral Combat Ship (LCS).
Anwar said procurement sometimes becomes an avenue for individuals to amass wealth through bribery or commissions, which must be stopped.
“This is not unusual; for instance, (Defence Minister) Datuk Seri Mohamed Khaled Nordin is aware, for example, regarding matters concerning the navy,” he said when officiating at the opening of the Mildef International Technologies Sdn Bhd (Mildef) armoured vehicle manufacturing facility in Sendayan here today.
The prime minister said he was quite disappointed during LIMA (Langkawi International Maritime and Aerospace Exhibition) 2023 that Malaysia did not have a new LCS to showcase, despite the high defence spending.
He said the absence of a new, advanced ship at LIMA 2023 forced Malaysia to display an old 1976 vessel. Nevertheless, he commended the crew’s dedication, discipline and sacrifices in operating the ship.
Anwar also expressed disappointment over misconduct involving defence agencies following the recent arrest of officers from the Malaysian Defence Intelligence Organisation (MDIO) by the Malaysian Anti-Corruption Commission (MACC).
“Although the situation is still under control, and the Minister and Chief of Defence Force (Tan Sri Mohd Nizam Jaafar) have given their assurances, I accept this positively. However, a country like Malaysia cannot easily forgive a military intelligence body involved in smuggling and betrayal.
“I cannot imagine that individuals trained to serve the country with commitment and sacrifice would engage in such misconduct. While this does not implicate everyone, our defence agencies should lead by example and be a source of pride. These are matters we must put an end to,” he said.
Anwar instructed all enforcement agencies, including the Royal Malaysia Police (PDRM), MACC and the Malaysian Armed Forces (MAF), to take all forms of misconduct seriously and conduct thorough investigations as a lesson for future generations.
He expressed confidence that government-to-government (G2G) procurement negotiations are more effective than using agents, as they reduce costs and allow additional conditions such as technology transfer and research involvement.
On Aug 13, the MACC arrested 10 individuals, including three serving officers and two former senior military officials, suspected of being involved in a smuggling syndicate in southern Malaysia. — Bernama
