Activist alleges RM20 million Mindef tender scandal threatens safety of 537 RMN personnel

KUALA LUMPUR: Activist Arun Dorasamy has alleged irregularities in a Ministry of Defence (Mindef) procurement process involving a tender worth nearly RM20 million, claiming it poses a direct risk to the safety of 537 Royal Malaysian Navy (RMN) personnel.

Speaking at a press conference today, Arun said the tender involved professional services for the maintenance of 317 safety life rafts installed on RMN vessels over a 12-month period. The contract was valued at RM18.4 million before taxes.

“This is not about winning or losing a tender. This is about national security and the lives of 537 RMN personnel who rely on these safety rafts during maritime emergencies,” he said.

The tender was issued on Jan 9, 2025, closed on Feb 25, 2025, and the successful bidder was announced on May 27.

Arun alleged that the company awarded the contract did not possess full certification from all six original equipment manufacturers (OEMs) whose life rafts are used by the RMN, as required under International Maritime Organization (IMO) standards.

“The successful bidder only holds certification from four of the six OEMs. This affects 43 out of the 317 life rafts, with a combined rescue capacity of approximately 537 RMN personnel,” he said.

He warned that life rafts maintained by non-OEM-certified companies may fail to deploy during emergencies and would not be covered by international insurance underwriters in the event of an incident.

According to Arun, only two companies submitted bids for the tender. He questioned why the bidder with complete OEM certification was not selected, while the company lacking full certification was awarded the contract.

Complaints were lodged with Mindef’s procurement division, the Ministry of Finance (MOF), and the Malaysia Competition Commission (MyCC), but Arun claimed all parties declined to intervene, citing jurisdictional limitations.

“MOF acknowledged in writing that there were elements of irregularities, but said the matter was outside its authority and advised us to lodge a report with the Malaysian Anti-Corruption Commission (MACC),” he said.

A report was subsequently filed with MACC on Aug 6 last year. Arun claimed that meaningful action only began after recent public exposure of alleged issues involving Mindef.

Meanwhile, Meriserv Sdn Bhd chairman Abdul Razak Basyirun said the company raised the issue solely on grounds of national security.

“We have been in this industry for over 30 years. This is not about business interests but about the safety of our naval personnel and the country,” he said.

Meriserv’s lawyer, Pavitra, confirmed that a judicial review application was filed at the Kuala Lumpur High Court in November and is currently at the leave stage.

“The hearing is scheduled for Feb 11, 2026. The core issue is whether the tender award process complied with legal requirements, proper procedures, and internationally mandated standards,” she said.

Arun further alleged that a similar situation occurred in 2020, when the same company was awarded a contract despite lacking full certification and relied on support from another firm to meet tender requirements.

He urged the government to urgently reform procurement oversight mechanisms to ensure effective checks and balances, warning that continued systemic failures would jeopardise national security.

“If this system continues to fail, the safety of our armed forces will continue to be compromised,” he said.