Government Procurement Bill to penalise all wrongdoers
ALL parties involved in public fund procurement will be fully accountable in the Government Procurement Bill 2025, says Datuk Seri Anwar Ibrahim (pic).
The Prime Minister said stringent penalties will be imposed on public servants and contractors, if they are found guilty of corrupt practices or breaching procurement procedures.
He added the Bill will apply to both federal and state governments as well as local authorities based on the source of the allocations.
“It also applies to federal and state statutory bodies, government-linked companies and any entities receiving grants or loans from the government,” he said when tabling the Bill for its second reading.
Anwar, who is Finance Minister, said the Bill, comprising 93 clauses across 12 parts, aims to eradicate corruption and prevent the leakage of public funds.
“It closes loopholes and opportunities that have previously been exploited by irresponsible parties.
“The Bill also raises the level of integrity in procurement by making it mandatory for all parties involved to declare any interests.
“This also aligns with the goals of the National Anti-Corruption Strategy which seeks to strengthen procurement governance to improve Malaysia’s Corruption Perceptions Index,” Anwar added.
The Prime Minister said rent-seeking, sub-contracting and interference in procurement exercise will be criminalised under the Bill, adding that firm punitive action will be taken against offenders.
“Regardless of whether they are public servants, including ministers, retirees, contractors or any other parties, if found guilty, they may be subject to fines or imprisonment,” he said, and urged civil servants to report corrupt practices.
Offences such as transferring or subcontracting awarded procurements or contracts, including rent-seeking activities, will be liable to a fine of not less than three times the value of the awarded procurement or contract, or RM1mil, whichever is higher, or imprisonment for a term not exceeding five years, or both.
Failure to disclose interests, including the interest of any beneficial owner, may also result in a fine not exceeding RM250,000 or imprisonment not exceeding five years, or both.
“Interference that disrupts the government procurement process may also be considered an offence and may be punishable by a fine not exceeding RM500,000 or imprisonment not exceeding five years, or both,” he said.
Anwar said the culture of awarding of contracts through direct negotiations will no longer continue.
He said the Bill will cancel rights and decisions of the Finance Minister and other authorities if a tender is awarded without proper procedures.
“Other than tenders, we have seen hegemony and monopolies, including of cartels, for something as small as eggs, chicken, vegetables, medicines and defence assets,” he said.
He said the Bill was in line with the government’s commitment for institutional reforms and strengthening audits by following public money and proper fiscal management.
“We give full freedom to the enforcement agencies, the Malaysian Anti-Corruption Commission (MACC), the police and the Inland Revenue Board (LHDN) to carry out their duties without interference from any party,” he said, adding that procurement must follow proper procedures.
The Bill was opposed by several opposition MPs during the debates and resistance from government backbencher Hasan Karim (PKR-Pasir Gudang).
Most of them called the government to delay and fine-tune the Bill.
