TnT has received a response from ZSSB, which we reproduce here. It has been edited for brevity but the salient points remain unchanged.  

The contractorisation program was initiated in 1998, with the aim to develop the local Aerospace Industry towards achieving the national aspirations of self reliance. Five local companies were identified and, based on their inherent capabilities, awarded maintenance contracts with clearly demarcated areas of responsibilities to ensure an orderly and healthy environment for growth.

It was agreed that AIROD maintain all RMAF aircraft mechanical parts and Zetro to maintain all Avionics and Ground Electronic equipment. Prior to the contractorisation, Zetro had collaborated very well with AIROD. Although, Zetro pioneered the in-country overhaul of the T56 Engine it was handed to AIROD in exchange for the Avionics, inline with the demarcation.

Zetro did not immediately take over the Avionics from AIROD as it was not aware of the impending changeover of AIROD ownership. However, since AIROD’s ownership changed hands, the public domain has been misinformed as if Zetro had taken over the Avionics contract awarded to AIROD.

In the case of the charges for the rate of transportation, Zetro would like to state categorically that the Government has not been charged the stipulated RM50 in almost all cases as a sign of goodwill thus how could the figures of 150 and 200 ringgits came about? Zetro maintains that the Government will not pay any rate that is outside the scope of the contract.

Currently, Zetro holds an inventory of over 4000 test equipment of all types, applicable to its scope of work, including a number of state-of-the-art Automated Test Equipment and facilities, some, the only one of its kind in this region, therefore it could hardly be said that Zetro lacks a commitment to invest.

Zetro did not procure the test equipment proposed by a particular OEM because it cost more than 240Million ringgit and the conditions of sale stipulated were unsatisfactory. It would require a100 years or more for a return of investment. Nevertheless, Zetro in the interest of the Government and as an evidence to its commitment did invest, resulting in more than doubling it’s capabilities at a relatively much reduced cost.

The consequent increase in Zetro’s capability has slowly but surely reduced the nation’s dependence on OEMs and vendors for repairs, subsequently reducing the turn around time and saving millions of ringgits by getting them repaired locally at Zetro.

The number of Late Deliveries (LDs) incurred by Zetro is very small and represents a tiny percentage when viewed with the total repairs carried out and delivered on time. LDs have been imposed on Zetro and they have been settled in accordance with the requirements of the contract.  As for the no ceiling issue, both of Zetro’s contracts with the Government currently do have a ceiling.

The program to upgrade the RMAF trainer aircraft to the PC7 Mark ll was initiated in 2007 and not in 1997 as stated by TnT. Further, no such contract was awarded to Zetro. The Government, however offered Zetro the offset program and Zetro responded by sending its engineers to Switzerland for training at the OEM facility.

Nevertheless, the Government awarded the contract to AIROD based on the demarcation of responsibilities. Zetro accepted the Government’s decision with dignity.

Zetro went on an open bidding in the market and several parties including MINDEF expressed their interest to rent the Zetro building. Zetro’s rates being very competitive and lower than prevailing market rate resulted in MINDEF opting to rent the building. 

Finally, Zetro is transparent and ever willing to ensure that timely and correct information is disseminated in the interest of all concerned.