Amid growing public disquiet, French prosecutors are intensifying their probe into a series of corruption scandals involving state-controlled arms makers DCNS and Thales – vendors of naval ships to several Asian countries including two Scorpene submarines sold to the Malaysian government.
“The French people are getting very interested in the scandals and they are questioning why their politicians and firms are getting involved in unsavory activities just so that they can sell ships to a bunch of third world countries,” PKR strategic director Tian Chua told Malaysia Chronicle.
“The questions of morality and ethics are being asked by the French NGOs, who have been campaigning against the rich helping themselves to more riches and benefiting at the expenses of the masses and the poor - especially those in the developing countries.”
Tian was in Paris last week together with several other prominent Malaysian activists. Kuala Lumpur-based NGO Suaram had lodged a complaint with the French authorities earlier this year.
They sought an update from the French police, who two weeks ago had raided the offices of DCNS and Thales, confiscating some documents to help in their probe of a RM5 billion submarines deal sealed between the two French firms and the Malaysian government in 2002.
Since then, allegations have erupted that the two firms may have paid some kick-backs to Prime Minister Najib Razak, who was the Defense Minister sanctioning the purchase at that time. The commission is believed to have been in the region of at least 114 million euros or RM540 million.The submarines were delivered last year.
Greed and murder
Like a similar case involving Taiwan, the Malaysian deal has been marred by a mysterious murder – that of a beautiful Mongolian translator Altantuyaa Shaaribuu. She had threatened to blow the whistle if she did not get her share of the commission from Najib’s close associate Razak Baginda. Altantuya, who could speak four languages including Russian, was believed to have acted as a go-between for the French firms and Baginda.
In Taiwan, as many as eight people are believed to have been murdered to stop them from exposing their case and even today, the current French government is unhappy with MaYing-Jeou’s administration for insisting on a full clean-up and has retaliated by withdrawing defense personnel from the island.
“That is not a wise move because more and more French people see these as despicable acts that their government should distance themselves from. The French taxpayers are also starting to wise up to the fact that they may end up footing the bill for the misdeeds of certain of their own political leaders, their naval firms and even the culprits in the foreign governments that got special deals from them,” Tian said.
Taxpayers demand compensation
The Taiwanese Navy took their case to court and won a massive US$861 million payment from the defense giant Thales, which is 27 percent owned by the French government, for sanctioning the payment of kickbacks to Taiwanese, Chinese and French officials in the purchase of the Lafayette-class stealth frigates in the 1990s.
The Taiwanese Navy filed the case in 2001, alleging it violated Article 18 of the contract signed with Thales, which banned the payment of commissions that are seen as thinly veiled kickbacks.
Taiwan bought 60 of the aircraft from France, along with missiles, at a cost of US$5.2 billion. France has since had to deliver more than US$3 million in compensation for parts and maintenance for the planes, some of which developed engine problems.
Apart from Malaysia and Taiwan, civil rights groups in India and Pakistan are also demanding similar compensation for kick-backs allegedly paid out by the French firms to corrupt government officials, forcing Indian and Pakistani taxpayers - just like those in Malaysia - to foot an inflated price for the arms ordered.
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