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The report by Tim Leonard (The Sun, January 2009) citing Finance Minister Dato Seri Najib Tun Razak's statement that he no longer encourages selective bidding (direct negotiations) for future government contracts demands serious attention. Many in the business including non-contractors will welcome the Finance Minister's statement given the reported abuses by unscrupulous high ranking officers in government ministries and departments.

Selective bidding is undoubtedly a source of corruption and in most cases, bidders will have to inflate the cost of the contract many time over to cover the cash payouts to corrupt officials whose services are solicited. The Auditor General's Annual Report, year-in, year-out only captures a fraction of a much larger scope of corrupt practice between the contractor and the officials.

The talk among God-fearing servicemen is that among the many government ministries, Mindef is said to be one of the major culprits to have favoured contracts through selective biddings over the open tender system.

Such talk at the shop-floor can be easily ascertained by reviewing the files in the Procurement Division and Treasury. The records will reveal the extend of contracts awarded through selective biddings, the favoured companies that are awarded the contracts and the immense inflated costs incurred.

Clearly, there is an obvious trend to award higher-value contracts through selective biddings and awarding such contracts to preferred companies that are well connected to high-ranking government officials.

As a case in point, the Army's Procurement Plan under the 9th Malaysia Plan has a total of nine (9) projects awaiting approval for selective bidding. It is anyone's guess that the same goes for the Air Force and Navy procurement plans. In total, such procurements would cost millions. It will not be surprising too that a well placed foreigner with connections at the top is awarded some of the contracts. Such are the practices at Mindef and it has been for quite some time now, and nobody really cares.

Given the minister's statement coming after all these years of blatant mal-pratcice, one can be frogiven for wondering if the statement made by the Finance Minister would really add up in the final analysis. Or perhaps, it was all meant to be in mere jest or as often is the case, it is mere 'politically correct' statement.

Hence, if we really want the government and the rakyat to gain legitimately, then the selective bidding for government contracts must cease without any further deliberation. Failing which, the head that announced this measure will have to roll.

Mohd Arshad Raji
Kajang 

Comments (10)

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written by burmen, February 24, 2009 23:51:26

B S! Period. AAB and the BN always used this line - too often. What is that I heard that the Subang International Airport currently being "re-constructed" to a tune to tens of millions.

Anyone know of any public tender being called? If not, than its negotiated tender, la. What else?

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written by merlin2001, February 24, 2009 23:55:24

Nice statement but no only meant for all the coming elections.
When they are over it will be back to selective breeding/bidding.
Prove it by letting the Selangor Government take over the water privatisation and
the return of of Perak to the people.
Return the IPP and the highways back to Malaysian incorporated.

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written by Zym Zym, February 24, 2009 23:57:33

"Mindef is said to be one of the major culprits to have favoured contracts through selective biddings over the open tender system."

Aisey, who was the ministry of defence? You see, Najiib's statement is only half the truth. What he never told the crowds is that he is no longer the MINDEF's boss, so he won't be getting the chunk of cake anymore. But he still wants it...so he is going to encourage open tendering so that his cronies outside the MINDEF could lobby for the job. At the end of the day, he is the PM and he calls the shot. As simple as that. Right Najiib?

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written by MAGELLAN, February 25, 2009 00:01:54

The government would save money if open tender was used. Policies such as awarding projects via third party local companies should be stopped.

Why not allow foreign companies to bid directly e.g. the helicopter deals. Why must the manufacturer bid through a local company that has no expertise and more often than not inflate the prices, so that they can "cover" certain persons with commissions, in the process enriching themselves too. Why must we make someone rich without the need for them to have the expertise or knowledge. There are many companies out there with the relevant skills, knowledge and expertise that cannot win contracts, these are also local companies. Tenders should be awarded based on merit, product quality, relevant product for the correct purpose, price and support.

Stop the nonsense of direct negotiations, turnkey projects, Build, Operate, Transfer (BOT) and etc. All these are short cuts to fleece the government of its coffers. In the end who actually pays??? The rakyat is the one that finances all this projects. To put it more appropriately, the middle income between RM 50-150K that pay the most taxes. It is this people that suffer.

Stop it now! In the name of Justice!!! Hidup PR!

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written by Ron, February 25, 2009 00:03:26

70% of the umno delegates are contractors.so najis takes over the finance portfolio to dish out contracts to the umno dog millionaires.

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written by Zym Zym, February 25, 2009 00:05:13

BTW, photo of Najiib and Atlantoya was worth RM 10 million one year ago. Guess how much is worth on the eve of April 1st? 10 times of its initial offer.

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written by mikewang, February 25, 2009 07:01:39

No longer encourages is not equal to stopping.
It's so difficult for the Finance Minister to say all government contracts must be processed in an open and transparent manner.
This is because UMNO will collapse if they stop direct negotiations to contracts.

Without a source to easy corrupt money, the party will die.

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written by loosecannon, February 25, 2009 08:08:58

No longer "encourage"? Doesn't sound very promising does it? Basically it means "negotiated tender" is now strictly for close cronies and family only? Sorry, some of you umno contractors are going to be off loaded the gravy train.

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written by Bigjoe99, February 25, 2009 08:46:57

There are so many UMNO-backing bumi contractors that depend on these negotiated basis contract especially now. Unless he has found another way to hand money out, they will march to his office. If he is confident his followers will take the hit after being fed by him for years, we will see.....

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written by sydput, February 25, 2009 10:31:13

Too little too late.
We are stuck with negotiated IPP's, ERL's, highways, sattelite channel (ASTRO) etc.
Due to this, our electricity charges, once lowest in the region, is now expensive, our airport cannot compete due to high cost of construction and subsidies, and the rakyat is deep in debt.

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