Procurement – a corruption hotspot
Akhbar Satar | 01 Mar 2019 00:30
Mokhtar Samad, president of the Malaysian Malay Contractors Association, said its members welcomed the new government’s commitment and support for open tenders. The move is considered an improvement because it prevents backdoor deals which can happen when projects are given through selected tenders or direct negotiations.
But it is shocking when he confirmed that in the past, 10 crony companies would take part in selected tenders, working in cahoots with one another or, in other instances, contracts would be awarded by direct negotiations, and given directly to cronies “with all sorts of reasons given” to justify the awards.
The prime objective of the government’s procurement process is to support its programmes by obtaining value for money through acquisition of works, supplies and services. The government’s budget for acquiring goods and services is diverse and huge.
In fact, in 2018, the government spent an estimated RM220.90 bil on development (assets and services). As a large amount of public funds are channeled into the market through public procurement, the procurement process continue to be vulnerable to fraud and corruption.
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