SHAH ALAM - PKR’s deputy president Rafizi Ramli revealed an offshore incorporated company, Alizes Marine Limited allegedly transferred funds from the littoral combat ship (LCS) project to overseas accounts.
Based on reports from an internal probe on the LCS project, Rafizi alleged that Malta base firm Alizes Marine Ltd was one of the firms identified for fraudulent transactions amounting to RM23.37 million.
He alleged the Malta firm was also named in Panama and Paradise papers - a list of offshore companies to stash away money from around the world.
"An internal investigation has named Alizes Marine Limited as one of the companies that received huge funds like this.
"Alizes Marine Limited was appointed by the project to supply spare parts for this (LCS) project on the recommendation of DCNS, the technical contractor that provides the design and technical specifications of Gowind design ships,” he said.
Invoices were sent to non-existent subcontractors for technical services, he said, and when suppliers were tracked down, the companies did not exist and had provided fake addresses.
"The modus operandi used was similar to the method used to steal money from 1MDB money. Fake companies set up with names identical to real companies," he said.
He said invoices were sent to non-existent subcontractors for technical services.
"An invoice was sent from one company but the payment instructions are for the invoice to be paid to an account registered under a company whose name is almost the same but are in fact a different company, Rafizi claimed.
He said previously Alizes Marine Limited was suggested to be the supplier on the ground it was the supplier from France (using Alizes Marine France).
The LCS project management was informed that Alizes Marine France has a global export license that gives it the advantage to supply defence spare parts.
"Due to that, LCS project management appointed Alizes Marine considering it has a worldwide export license.
"The information is actually false because Alizes Marine Limited does not have any license, but is just an offshore company with no operations.
"Although the LCS project received invoices that appeared to come from Alizes Marine France, the payments were actually made to an account in Singapore owned by another company using the name Alizes Marine Limited (almost the same but different),” Rafizi claimed.
He said the investigators also concluded that DCNS and another company from France were part of a scheme that transferred money from this project in violation of the Money Laundering Act (AMLA).
"This was confirmed when investigators compared the amount paid through LCS project to purchase replacement equipment to Alizes Marine Limited (compared to the amount reported in Alizes Marine France's financial statements) for the period 2011 to 2015.
"During that period, the LCS project subcontractor paid EUR43.69 million (equivalent to around RM210 million) to Alizes Marine France (based on invoices sent but paid to other accounts under Alizes Marine Limited) for the purchase of spare parts,” he said.
This means that a total of RM192 million has been transferred to the accounts of offshore companies that cannot be tracked, he added.
Rafizi said this could not have taken place without the protection of higher-ups who are more powerful than the recently charged navy chief.