DIRECT NEGOTIATIONS – NO END IN SIGHT

Once again, the issue of direct negotiation for government contract was raised in parliament by Member of Parliament Machang, Saifuddin Nasution recently, despite the pledge made by the government that direct negotiation should cease. He was referring to the on-going direct negotiation to be awarded for the sub-marine rescue services for the Royal Malaysian Navy billed at RM 2.45 billion to a bumiputra company.

Apparently, the company being called for direct negotiation is a bumiputra construction company having no previous experience in handling naval contracts. It is also believed that this same company was awarded the construction of the aircraft shelter and ammunition dump at the RMAF based at Gong Kedak, Kelantan; the former project is said to have major defects in the construction that could affect aircraft safety. This same company was also awarded three construction projects for the Army Camp at Gemas. I have also been told that currently the same company has an on-going construction project in Ipoh and Pahang.

One only need to search the background of this bumiputra company, and it will not be difficult to find that the owners of the company are well connected to some top government politicians.  Otherwise, it will not be too easy for the company to be awarded contracts through direct negotiations by the government. A search at the Ministry of Defence will reveal it all, including spilling the beans of those involved in approving the award of contracts.

The time has come for the government to take stock of the abuses by unscrupulous officials who have been awarding contracts through direct negotiations.

Mohd Arshad Raji
Kajang