DAP MP calls for review of Spanco contract amid chairman’s legal woes

Lim Lip Eng asks how the government can ensure that contract obligations are met given the allegations of cheating against Spanco’s chairman.

(FMT) – A DAP MP has called on Putrajaya to review its contract with Spanco Sdn Bhd for the procurement and management of the government’s fleet of vehicles, given the ongoing criminal proceedings against the company’s chairman.

Lim Lip Eng, the MP for Kepong, also expressed scepticism over the finance ministry’s previous response to him, stating that the government’s agreement with Spanco remains in effect.

In a written parliamentary reply dated March 12, the ministry also said that the government had ensured adherence to procurement procedures and due diligence was done on the contract.

Lim had asked whether the contract with Spanco had caused harm to the country and if termination was warranted in the event that it was detrimental.

“Forgive my scepticism, but I am not entirely satisfied with the government’s response,” Lim said in a statement.

“How can the government ensure the fulfilment of obligations under the contract with Spanco after the company’s boss has been accused of cheating the government?

“What is the value of the concession agreement, and when is it set to expire? Was the award of the contract to Spanco approved by the Cabinet?”

Spanco chairman Tan Hua Choon claimed trial on April 3 to a charge of cheating under Section 420 of the Penal Code.

He allegedly misled the tender committee on the percentage of Bumiputera shareholding in Spanco, leading to the finance ministry awarding the company a contract worth RM3.9 billion to procure and manage the government’s vehicles fleet.

Spanco reportedly held the concession to supply and manage the government’s fleet of vehicles from 1993, although this ended in 2019.

There was an open tender that year and a joint venture between Berjaya Group and Naza Sdn Bhd reportedly secured a letter of intent for the deal.

In February, Prime Minister Anwar Ibrahim said the government’s agreement with Spanco was “hurting” the country and did not “sit well” with civil servants.