Transparency International Malaysia (TI-Malaysia) said the need for more transparency in defence procurement was shown by the investigation into an alleged army procurement cartel that led to the arrest of a former army chief this week.
The allegations about cartel arrangements, inducements to senior officers, repeated awards of high-value defence contracts, and the seizure of large sums of cash, point to long-standing governance weaknesses in the defence sector, TI-Malaysia said.
Excessive secrecy and weak oversight within national security institutions lay behind past controversies involving inflated contracts and the influence of middlemen, it said.
TI-Malaysia said the defence sector remains subject to limited public and parliamentary scrutiny, in the absence of a federal Freedom of Information law and the broad application of the Official Secrets Act, restricting access to information on procurement frameworks, tender processes and contract awards.
The group urged the government to adopt the “Tshwane Principles” on national security and the right to information adopted by a network of international organisations associated with the Open Society Foundations set up by US tycoon George Soros.
The principles require a clear harm test and a public interest test on any restriction on access to information be based on a legitimate and demonstrable national security interest.
“Information classification must not be used to shield corruption, abuse of authority or the misuse of public funds,” TI-Malaysia said, adding that transparency and accountability in defence procurement are essential safeguards rather than threats to national security.
Earlier this week, the Malaysian Anti-Corruption Commission arrested former army chief Hafizuddeain Jantan and his two wives while investigating 26 companies linked to military contracts allegedly involving a senior army officer. The probe also covers family members and about 40 companies suspected of involvement in bribery schemes.
MACC has seized RM6.9 million in gold bars and cash in foreign currencies, as well as a high-performance sports utility vehicle, as part of the investigation.