Wow!!! RM1 billion each for an offshore patrol vessel? It's made of gold, perhaps?

What is this Zahid talking about? And, who are the 632 vendors?

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Tuesday February 8, 2011

RM6bil to purchase six ships too much, says Pua

PETALING JAYA: DAP national publicity chief Tony Pua (pic) has urged the Government to be more transparent in awarding contracts to ensure public money is not wasted on overpriced purchases.

He was commenting on the Defence Ministry’s allocation of RM6bil to purchase six offshore patrol vessels for the Royal Malaysian Navy, to be built by Boustead Naval Shipyard Sdn Bhd.

Pua questioned the amount for the six vessels, saying it was more than the cost of ships built by other international builders.

He listed naval vessels of the same class being used by several nations like New Zealand, Germany, Greece and Israel costing between RM103mil and RM791mil.

“The Defence Ministry’s price tag of RM1bil per vessel is between 26% and 870% above the cost of the various international-class vessels listed,” he said in a statement.

Pua added that the United States’ most advanced ship of a similar class cost below RM1bil, and asked if the six vessels to be purchased would be equipped with the same specifications as the US Navy’s.

Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi said the ships’ construction would boost the economy while benefiting 632 vendor companies.

He said Boustead Naval Shipyard had constructed several new-generation vessels for the navy and shown itself to be on par with other shipbuilders in the world.