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Malaysian defense ministry denies corruption in submarine contract
Last Updated(Beijing Time):2012-06-27 14:55

The Malaysian defense ministry rebutted on Wednesday claims that it has sold classified navy documents to help a subsidiary of French defense firm DCNS secure the purchase of two Scorpene submarines.

Activists group Suara Rakyat Malaysia or Suaram had said the ministry sold navy documents to Thales International, a subsidiary of DCNS to help it secure the one-billion-euro (1.2-billion-U.S. dollars) submarine contract.

"Up to now there is no information detected to have been leaked out of Malaysia. The defense ministry has no information on the allegations of so-called secret documents sold by Terasasi ( Hong Kong) to Thint Asia (Thales International) for 36 million euros (44.9 million U.S. dollars)," Defense Minister Ahmad Zahid Hamidi told the parliament early Wednesday morning in reply to an opposition MP's adjournment speech.

Hong Kong-based Terasasi Ltd. was said to be owned by Abdul Razak Baginda, an associate of prime minister Najib Razak. Najib was Malaysia's defense minister in 2002.

Suaram filed a complaint at a special French investigative court in April, disclosing documents that purportedly showed Terasasi had sold the navy documents.

The group also alleged that a 114-million-euro commission was paid to Perimekar Sdn Bhd, another company owned by Abdul Razak Baginda.

Najib's supporters accused the allegations were a plot by the opposition People's Alliance to undermine Najib's administration ahead of an election due to be called before April next year.

"The Malaysian government understands that there is no hearing in France regarding the Scorpene submarines," Ahmad Zahid said, adding that the purchase was done through direct negotiations according to the government's procurement procedures.

Source:Xinhua 
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