The termination in the use of middlemen in the maintenance and overhaul of the Sukhoi jet-fighters will half the costs of doing business.Such a shocking revelation!
It shows for the first time, the yawning profit gap of rent-seekers in this maintenance project. Just do nothing and collect!Walla!
This was revealed by the Minister of Defence. He said the contract for the maintenance and overhaul of the Sukhoi SU-30MKM jet fighters, which was previously awarded to agents or 'middlemen' in Malaysia and Russia, has been terminated, adding that the maintenance and overhaul of the jet fighters would now be undertaken by a leading local company that carried out maintenance, repair and overhaul works which is Airod Sdn Bhd.
"With the measures we are taking, the maintenance and repair costs will be reduced by 50%," he told reporters after witnessing the signing of the agreement between Crecom Burj Resources Limited and IRKUT Corporation, here Monday.
At the Parliament sitting in March, Defence minister Zahid Hamidi had said that the cost to maintain the Sukhoi jet fighters was RM220 million annually.
He said 15 Sukhoi jet fighters had been acquired for the country's defence inventory while three more units were expected to be acquired very soon.
Zahid said the warranty period for the 15 Sukhoi aircraft had been extended until the remaining units had been acquired.
I think this is a good beginning. Bravo, Minister Zahid!
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