
The deal for the 12 Cougar EC725 helicopters between Eurocopter Group of European Aeronautic Defence and Space (EADS) and the Defence Ministry has been postponed for now when the media asked the Prime Minister on the status of the deal.
The $1.7 billion ringgit deal was awarded to the Eurocopter Group to replace the Defence Ministry’s fleet of 28 military Nuri transport helicopters, but the move has been criticised by de facto Opposition leader Anwar Ibrahim who claims there were financial irregularities.
Prime Minister Abdullah Ahmad Badawi
“At the moment, we have decided not to purchase the helicopters. We need to delay it because of the financial crisis. We need to have money. We just cannot be borrowing every time. We need money. The best thing to do now is to reallocate our budget. I don’t believe there are irregularities. Once the financial situation improves, we will buy. We need new helicopters to replace our ageing fleet”