In May last year, the ministry signed a RM187 million deal with Aerotree Defence and Services Sdn Bhd to lease the helicopters for five years.

The helicopters are for the army air corps and the first one should have been delivered last November.

Defence minister Khaled Nordin today said a decision would be made soon on whether to cancel the contract or grant the supplier additional time to deliver the helicopters, Berita Harian reported.

“We need to look into whether any penalties will be imposed due to the delay or if we need to just cancel the contract,” he was quoted as saying.

“The helicopters are for the use of military personnel in the interior areas of Sabah and Sarawak and for transporting equipment. They will also allow us to improve our operations.”

Yesterday, army chief Hafizuddeain Jantan said the contractor has been given until the end of the month to meet their obligation, failing which the army will propose to the ministry that the contract be cancelled.