Petaling Jaya Utara MP Tony Pua has accused the government of intending to buy 257 armoured personnel carriers (APC) for a total of RM8 billion - which he claim is far above market price.

NONE According to Pua ( left in pix ), the government will be paying RM31.1 million for each despite the availability for cheaper and far superior models in the market.

"Even the best in class main battle tank... M1 Abrams M1A2... goes for less than RM 20 million," he said.

Pua was commenting on reports that the Defence Ministry had signed a letter of intent worth RM8 billion with Deftech Sdn Bhd, for the APCs during the Defence Service Asia (DSA) 2010 exchibition in Kuala Lumpur on Tuesday.

Deftech is a wholly owned subsidiary of DRB Hicom, a government-linked company.

He then gave an example of the purchase made by the Portugese Army for 353 Pandur II 8X8 armoured vehicles for RM1.56 billion which means it cost RM4.41 million each.

Therefore we are paying RM26.69 million more for each vehicle.

NONE Pua added that the latest version of Piranha III 8X8 armoured-wheeled vehicle ( right ) developed by the Swiss MOWAG Gmbh is priced at only RM3.9 million.

"In 2009, the US army had awarded a US$2.2 billion contract to General Dynamics Land Systems-Canada, one of the best military vehicles and equipment manufacturer in the world, for 724 Light Armoured Vehicles for only RM9.9 million each," he said in illustration.

Pua also claimed that despite the price tag, Deftech had admitted that they are only at the prototype development stage.

 He quoted Deftech Chairman Mohd Khamil Jamil at a press conference during the 12th Defence Services Asia 2010 exhibition on Tuesday as saying:

"We have an order for 257 8X8 AWV units but right now, we are going to come up with prototypes meant for testing purposes only by the army before we develop the whole range of armoured vehicles."

Pua  then voiced his disgust at the transaction which showed the lack of prudence in the government's financial management of the country.