Make govt tenders more accessible

PETALING JAYA: The Government Procurement Bill, which is expected to be tabled in the Dewan Rakyat this year, must ensure a certain level of transparency in public procurement to reduce leakages, say concerned groups.

“The government must be wholly transparent about any proposed project for which they seek tender applications,” said Centre to Combat Corruption and Cronyism (C4 Centre) chief executive officer Pushpan Murugiah.

This includes “the eligibility criteria, budget, deliverables, and other relevant details that must be made available to the public, (and which should) not just be restricted to a select group of vendors,” he added.

He said the evaluation criteria and justification for the selection of these tenders, as well as the reasons for acceptance or rejection of a tender application, must be publicised to ensure that these decisions are made on the basis of merit and the ability of the vendors to meet project requirements.

“This would minimise corrupt elements such as cronyism and nepotism from affecting the selection,” he said when contacted.

Pushpan said that such information should be made available on easily accessible platforms for public scrutiny.

“Every government department and ministry, with very limited exceptions, has to be held to the same standard for information disclosure.

“Whilst we acknowledge that a certain amount of confidentiality may be upheld in order to protect the interests of businesses and the private sector, this should not serve as a blanket justification for the government to conceal any and all procurement-related information from the public,” he added.

He said the parameters on the exceptions given to the rule of public disclosure must be properly outlined in the proposed Bill.

Past procurement-related scandals had shown that many institutions were not able to regulate their procurement processes internally, therefore leading to massive losses of government funds, said Pushpan.

The proposed Act was mooted by the Pakatan Harapan government in 2019 but it did not materialise.

In September 2023, the Prime Minister’s Office said the Bill, which is aimed at enhancing accountability in government procurement, would be drafted.

Every year, millions of ringgit in losses of public funds are reported in the Auditor-General’s Report due to irregularities and leakages.

The Auditor-General’s Report 2022 showed losses of more than RM600mil in public funds.

Transparency International Malaysia president Dr Muhammad Mohan said the Bill must ensure that an open tender system is required for all mega and long-term projects.

“That is what is meant by transparency and disclosure of a government that practises good governance.”

For budgeted, urgent or short- or medium-term projects, he said selected tenders will be a practical option where approved and shortlisted contractors can participate.

“However, there must be transparency and disclosure,” he added.

Muhammad said the information on “Beneficial Ownership” of all companies participating in tenders above a certain threshold should also be disclosed.

Beneficial Ownership information must be made mandatory in the law, he said.

(A beneficial owner is a person who enjoys the benefits of ownership although the company is legally owned or registered under another person’s name.)

Muhammad also said an “Integrity Pact” with independent oversight must also be adopted, especially for mega projects above RM4bil.

“The Littoral Combat Ship (LCS) fiasco would not have happened had there been an Integrity Pact with independent oversight from the beginning,” he said.

He was referring to the RM9bil procurement deal in which none of the six LCS ordered was delivered despite a contract having been signed.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the proposed Bill is part and parcel of fiscal reforms so that transactions will be on record.

“I suppose the Government Procurement Bill would indicate the governance process and procedure in procuring any government projects.

“It’s about making the transaction transparent and fair so that it will promote confidence among the public on how government resources are being managed.”