CEASE THE SELECTIVE BIDDING FOR GOVERNMENT CONTRACTS
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
