THE agreement with Spanco, the company handling the procurement and management of the government’s fleet of vehicles, is still in force, says the Finance Ministry.
According to the ministry, the government will constantly ensure that Spanco’s procurement contract is carried out in accordance with the agreement, that procurement procedures are followed, and that all necessary due diligence is completed.
“As of now, the contract is still in force based on the terms agreed upon between the government and Spanco,” said the ministry in a written reply dated March 12, to a question from Lim Lip Eng (PH-Kepong).
Lim had asked the Finance Ministry if the contract with Spanco was not beneficial to the country.
The Kepong MP had also asked if termination of the contract was warranted in the event that it was found to be detrimental.
Spanco has held the concession to supply and maintain government vehicles since 1993.
When the contract ended in 2019, an open tender was launched, and a letter of intent (LOI) was awarded to a consortium formed by Berjaya Group and Naza Sdn Bhd.
It was reported that the LOI was terminated in 2020, and the tender was awarded to Spanco again.
The Malaysian Anti-Corruption Commission had said that it was investigating a RM4.5bil contract for procuring and managing the government’s fleet of vehicles.
In February, Prime Minister Datuk Seri Anwar Ibrahim said that the government’s agreement with Spanco was “hurting” the country.
