JOHOR BARU: “Broker contractors” have been dropping big names to land lucrative contracts only to sell them off for huge profits, the new state government has found out.
The brokers intimidated civil servants into approving projects that would otherwise not get the green light.
It is learnt that among those hit by the scam were the Public Works Department (PWD) and local councils.
Johor Works, Infrastructure and Transport Committee chairman Mazlan Bujang (pic) said there were at least four to five such brokers in the state alone.
“This has been going on for some time, and they have raked in tens of millions of ringgit,” he said, adding that the projects did not just involve the PWD and local councils but other agencies too.
Mazlan said the Pakatan Harapan state government would only be working with genuine contractors from now on – and not those who had leased out their licences.
“I have asked for a full review and check on all contractors in the state,” Mazlan said, adding that the state had 7,789 registered contractors, with 3,031 made up of G1 (previously Class F) contractors who handle projects worth below RM200,000.
Asked if he planned to lodge reports against such brokers, he said those who had strong evidence against brokers that had fleeced them could do so.
Mazlan said his priority was to call tenders for five road upgrading projects in Pasir Gudang, Muar, Pekan Nenas and Gelang Patah.
“We will be publishing tender notices for these projects soon. Most of them were done via direct negotiation in the past.”
Mazlan said there were many issues that needed to be reviewed, failing which leakages in government spending for projects could recur.
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