Kuching: DAP Sarawak Chairman Chong Chieng Jen has given Hornbill Skyways Sdn Bhd two weeks to explain an alleged US$71.7 million leasing arrangement involving a pre-owned Dassault Falcon 8X VVIP aircraft.
Chong personally delivered a formal letter to Hornbill Skyways yesterday seeking clarification over information he received concerning the alleged lease, which he said involved an aircraft intended for use by the Sarawak Premier and other senior state officials. The company has acknowledged receipt of the letter.
Chong who is also Stampin MP and ADUN for Padungan, said he first raised the matter last Friday during DAP Sarawak’s 60th Anniversary Fundraising Dinner after receiving information indicating that Hornbill Skyways had entered into an arrangement involving a 2016 Dassault Falcon 8X with a total contractual value of US$71,777,553.
Based on documents currently available to him, Chong said Hornbill Skyways allegedly entered into the leasing arrangement with Cempaka Helicopter Corporation Sdn Bhd for the aircraft to be made available for use by the Sarawak Government.
He said that approximately half of the alleged contract value was to be paid upfront, while the balance would be paid over five years through monthly payments exceeding US$590,000.
The arrangement appeared to be a “dry lease”, Chong said, meaning maintenance, crew and operational expenses would still have to be borne separately by Hornbill Skyways.
More importantly, he said ownership of the aircraft would apparently remain with Cempaka even after more than US$71 million had been paid over five years.
Chong said market information available to him indicated that a comparable pre-owned Falcon 8X of similar vintage could be worth approximately US$39 million to US$43 million.
This, he said, raised a fundamental question over why Hornbill Skyways would pay more than US$71 million to lease an aircraft for five years without acquiring ownership.
In his letter, Chong asked three key questions: why a contract of such magnitude was apparently concluded within about two weeks; whether proper due diligence and competitive quotations were obtained; and whether a proper market survey, supplier evaluation and independent valuation were conducted before Cempaka was selected.
He also questioned how the lease consideration was determined and whether the arrangement represented value for money.
Chong further asked why Hornbill Skyways chose to lease instead of buy, noting that the alleged upfront payment of more than US$35 million was already close to the indicative market value of a comparable Falcon 8X.
He also raised information suggesting Hornbill Skyways may be considering leasing a Dassault Falcon 7X from Cempaka, urging the company to confirm whether such a plan exists and to disclose its proposed value, procurement process and commercial justification.
Chong stressed that the matter was of public interest because Yayasan Sarawak and Sarawak Timber Industry Development Corporation (STIDC), both government-linked statutory bodies, collectively hold about 99.999% of Hornbill Skyways.
He said the public deserved a transparent explanation on the use of such substantial funds and whether proper procurement procedures had been followed.
Chong said he would give Hornbill Skyways two weeks to respond.
“If a comparable pre-owned Falcon 8X is worth only around US$39 million to US$43 million on the market, why would more than US$71 million be spent to lease one for five years and after paying all that money, Hornbill Skyways would still not own the aircraft?” he asked.
“That is the question Hornbill Skyways and the Sarawak Government owe the people of Sarawak an answer to,” he said.
