Cyber CoffeeShop
Posted by:MGG
Pillai ([email protected]
)
Organization:Journalist
Date posted: Sun Jan 19 14:47:52 1997
Subject: Minister denies involvement in Telekom-Ericsson
deal
Message:
The prime minister, Dato' Seri Mahathir Mohamed, promised
in San Francisco yesterday he would investigate allegations of impropriety
in Telekom Malaysia Berhad awarding a contract to the Swedish telecommunications
giant, Ericsson. A minister was mentioned in Dato' Seri Anwar's press conference
reply to a question on this allegation. The minister for telecommunications
and works in 1992, when the tender was awarded, was Dato' Seri S. Samy
Vellu.
Yesterday, Dato' Seri Samy Vellu denied any involvement in the tender process, and said it was the finance ministry which accepted or rejected TMB's choice of who should get the contract. The 1992 contract, in which aspersions are now cast, was worth RM414 million for Perwire Ericsson (the local partner in this joint venture is the Armed Forces Fund) to supply digital exchances with a capacity for 800,000 lines.
The minister says that he has no power in his present
Works ministry to decide, or be involved in any manner, until contracts
are approved. Then why did this hands-off cabinet minister go, begging
bowl in hand, to Singapore, during an investment seminar, and to New Delhi
to ensure that Renong Berhad got road-building contracts in India?
Subject: DPM orders immediate investigation into
the Telekom-Ericsson contract
Reply Posted by: MGG
Pillai ([email protected]
)
Organization: Journalist
Date Posted: Sun Jan 19 15:14:16 1997
Message:
The deputy prime minister, Dato' Seri Anwar Ibrahim,
reacting to his cabinet colleague, Dato' Seri S. Samy Vellu's denial, yesterday
ordered an "urgent" investigations into alleged impropriety in Telekom
Malaysia Berhad awarding a contract to the Swedish multinational, Ericsson.
On Friday, Dato' Seri Samy Vellu told reporters that, as the telecommunications
and posts minister when the contract was awarded in 1992-1993, was not
involved in the alleged discrepancies surrounding the award, indirectly
implying that if there was any ministerial interference, it must have been
in the ministry of finance.
In contracts like these, the relevant minister must give his approval before the finance minister would give its final approval. Dato' Seri Samy Vellu insisted that ministers had no say in any tender involving privatised entities of their respective ministries, irregardless of the value of the contract. Dato' Seri Anwar disagreed. "Yes and no. We have to investigate. Dato' Samy (Vellu) was too quick to make a decision."
Dato' Seri Anwar would not comment if a cabinet minister is involved in these allegations of impropriety. But Dato' Seri Samy Vellu's shooting from the hip on his return from London confirmed that. The current investigations indeed has to do with him, even if Dato' Seri Anwar said there were only references to wrongdoing by a cabinet minister or senior Telekom officials.
But why was there the need for Dato' Seri Samy Vellu to
comment on it on his arrival? No one accused him of it. I did say he was
the minister at the relevant time. But who am I? It is pretty well known
that relations between him and the deputy prime minister are not what it
should be. This current episode can only make it worse.
