KUALA LUMPUR: The Public Accounts Committee (PAC) has flagged the use of the proof-of-concept (POC) approach in government procurement, which it says can be exploited to bypass government procurement procedures.
“Based on observations by the PAC regarding several issues related to the implementation of proof-of-concept (POC), it was found that this appeared to be used as an opportunity to bypass government procurement procedures,” the committee said in its report on the Briefing on Government Procurement and Contract Administration by the Finance Ministry (MOF) tabled in the Dewan Rakyat on Thursday (Dec 4).
It added that the government needs to inspect this matter to ensure that no loophole can be exploited by any party.
POC are pilot or trial runs that are used to show the feasibility of a project, solution or product before contracts are awarded.
The PAC said government procurement procedures are essential to ensure that public spending is implemented efficiently, transparently, and responsibly.
“Various procurement methods, such as direct purchase, quotations, open tenders, and direct negotiations, are established with clear criteria and value thresholds. The procurement process from planning to contractor appointment involves several assessments, including technical and financial evaluation and approval by the approving authority,” it said.
Although the approval thresholds differ depending on the type of project and entity such as statutory bodies), the main principle is to select the best tenderer based on the evaluations carried out,” it said.
The PAC urged the government, particularly the Finance Ministry, to address the issues raised in order to strengthen the integrity of the national procurement system.
“Government procurement procedures must always be updated, including strengthening governance of government procurement to ensure public funds are used efficiently, transparently, responsibly, and free from waste and corruption,” it said.
It also called for the Government Procurement Act to be enforced to reduce misconduct, violations of governance, and mismanagement.
