Do the Malaysians know something we don’t?

Late Tuesday, as the entire defense aerospace world waited for word from the Pentagon on the $40 billion aerial refueling tanker contract being hotly contested by Boeing and EADS/Northrop Grumman, one newspaper claimed it knew the victor.

The Malaysia Sun, a daily paper in Kuala Lumpur, posted on its website that EADS and Northrop won the contract, beating out Boeing in what would be a considerable upset. There was no attribution, or any sign of how the Sun learned this information, which Boeing, Northrop and every reporter and analyst in the defense industry has been waiting for all week. And neither company, nor the Pentagon, confirmed the report. So color us doubtful.

In other tanker news, Washington Gov. Christine Gregoire said a formal investigation or Congressional inquiry may be in order if Boeing loses the contract, according to this morning’s Seattle Post-Intelligencer. Behind the scenes, Northrop, too, is already making noises about a protest if it loses, say defense analysts who’ve been briefed on the tanker talks. Neither company has commented publicly on the selection process or said if they plan a protest.

Air Force brass have repeatedly delayed the tanker award and stressed the importance of running this contract process completely by the books, in the hopes of avoiding what could be a long and contentious protest by the loser.

An award is expected any day, likely after stock markets close. Check back this afternoon for an update.