KUALA LUMPUR: The Government Procurement Bill, which aims to enhance accountability and transparency in public procurement and criminalise related breaches, has been tabled for first reading in the Dewan Rakyat.
The Bill was tabled by Deputy Finance Minister Lim Hui Ying on Monday (Aug 25), and the second reading is also scheduled for the current meeting.
The Bill provides for the establishment of a Government Procurement Appeal Tribunal to uphold integrity and fairness while maximising the benefits from the use of public resources.
It was drafted based on the principles of advocating a culture of accountability as a fundamental value in the governance, participation and administration of government procurement.
It will also be supported by an independent mechanism of checks and balances.
The new legislation also aims to ensure maximum implementation of open and competitive procurement methods while ensuring access to fair and equitable government procurement.
The proposed law will also see the establishment of a procurement board which will approve all procurements.
According to provisions in the Bill, if the board fails to reach a unanimous decision on any matter being deliberated in a meeting, it will refer the matter to the minister concerned.
If in relation to a state, it will refer to the mentri besar or chief minister or any other authority as determined by the state government, for a decision.
For ministries and state departments, the board will constitute a controlling officer who will be the chairman, the Treasury secretary-general or approved representatives, the director-general of the Public Works Department (JKR) or approved representatives, among others.
For procurement related to the Finance Ministry, the board will comprise the Treasury secretary-general or any nominated officer who will chair the board, an undersecretary of the ministry’s procurement division, the director responsible for national budget and the director-general of JKR or a representative.
A registrar will also be established to advise the Treasury secretary-general on matters related to the registration of suppliers and contractors under this Act; monitor and investigate breaches; register suppliers and contractors; maintain a register of recognised suppliers and contractors; and collect fees, among others.
The registrar can also refuse an application for registration or renewal if a contractor or supplier has been previously convicted of an offence under the Malaysian Anti-Corruption Commission Act 2009 or any corruption offences under overseas laws; or has committed an offence relating to corruption under any law outside Malaysia; infringed the Competition Act 2010; been convicted of an offence and registered under the Registration of Criminals and Undesirable Persons Act 1969; or declared bankrupt in or outside of Malaysia.
As for companies, their application can be rejected if they have been wound up, among other reasons.
“Any registered person whose registration has been suspended or revoked under Section 21 is prohibited from registering or participating in a new registration,” the Bill read.
The registrar can also publish any information concerning the approval, lapse, renewal, suspension or revocation of registration or prohibition or exemption from registration under the Act; ownership, shareholding and directorship information; action taken as well as the conditions imposed if deemed necessary, on the grounds of public interest.
“No person shall, directly or indirectly, intervene or, by intimidation, undue influence or in any other manner interfere, in an active procurement... to cause or which is likely to cause a departure from the procurement process under this Act. or any instructions, circulars or guidelines issued under this Act,” the Bill reads.
Those found to have committed an offence will be liable to a fine of up to RM500,000 or a prison term of up to five years or both.
