KUALA LUMPUR: The newly passed Government Procurement Bill may not be amended in the near future, said Treasury secretary-general Datuk Johan Mahmood Merican.
Johan also anticipated that the Government Procurement Bill would come into full effect as an Act by early next year.
Johan said Finance Minister II Datuk Seri Amir Hamzah Azizan, when winding up debates on the Bill at the Dewan Rakyat on Thursday (August 28), has given his commitment that the government would take up some suggestions by MPs.
“Finance Minister II committed that some of the positive suggestions during the debates, some of those will be incorporated into our Treasury Guidelines.
“So, we don’t see any immediate amendment to the Bill. But, some of the best practices will certainly be reinforced in Treasury Instructions and Guidelines,” said Johan during a media briefing session on Friday (Aug 29).
Johan also denied criticisms by civil society groups that the Government Procurement Bill grants wide-ranging ministerial powers.
According to Johan, the powers of the Finance Minister are already provided in the Financial Procedures Act 1957.
“To be crystal clear, no additional powers or widening of powers arise from the Government Procurement Bill,” he added.
Johan stated that, according to the Government Procurement Bill, procurement decisions made by ministers can be challenged by authorities if discrepancies are found.
“So, under the Bill, the minister is potentially exposed if he commits any offences,” said Johan.
At the same time, Johan said that the Government Procurement Bill is expected to be enacted as an act by 2026.
“We anticipate that this will come into full effect by early next year. This will give us some time to ensure that we update all consequential documents in line with this Bill.
“The effective date of this Act will be very much towards early next year,” he said.
On Aug 28 afternoon, the Government Procurement Bill was passed in the Dewan Rakyat despite significant objections from the Opposition.
The Bill was passed via a bloc vote, with a total of 125 MPs voting in support, another 63 voting against it, 32 being absent and one abstaining.
The Government Procurement Bill seeks to standardise procurement processes in the public sector
Procurement approvals will follow a tiered threshold. Controlling officers, procurement boards, and ministers, including mentri besar or chief ministers at the state level, would have approval authority depending on the contract value.
Unlawful contract transfers, failure to disclose a conflict of interest, and interference in an active procurement process are punishable by a fine of up to three times the value of the contract or RM1mil, whichever is higher, and imprisonment for up to five years.
