Kuala Lumpur, April 29: A Malaysian rights group said Wednesday it filed complaints to French prosecutors that allege shipbuilder DCNS paid kickbacks to a friend of Malaysia’s prime minister to aid a $1.2 billion submarine deal.
Malaysia ordered two diesel-electric Scorpene attack submarines in 2002 as part of a naval upgrade. Prime Minister Najib Razak was defense minister at the time.
Local rights group Suaram said it filed two complaints in December 2009 and February this year with French prosecutors. Under the French legal system, prosecutors must first investigate a complaint before the case can proceed.
The complaint centers on a 114 million euro ($150 million) fee paid by DCNS to Malaysian firm Perimekar Sdn. Bhd. to facilitate the deal, said Suaram official Cynthia Gabriel. Perimekar is owned by the wife of Abdul Razak Baginda, a controversial figure who once was Najib’s aide and a close friend.
The case could embarrass Najib, who is struggling to consolidate his power a year after taking office. Although the opposition has long accused the government of corruption in the submarine deal, this is the first legal action, albeit in a foreign country.
Joseph Breham, a French lawyer hired by Suaram, said French prosecutors agreed in early March to launch a preliminary inquiry into possible corruption and kickbacks paid by DCNS.
–Agencies