Finance Ministry detects irregularities in govt procurement tenders


PUTRAJAYA: The Finance Ministry has detected irregularities in government procurement tender processes where tender specifications are tailored to favour certain vendors, says Treasury Secretary-General Tan Sri Johan Mahmood Merican.

He said that there have been incidents where the tender process gave set specifications that were skewed towards a specific vendor

"We are seeing many incidents where the tender looks good on paper, but after financial and technical evaluations, only one bidder remains because all the specifications were tailored toward a single vendor," he said during his opening speech at the 2026 Malaysian Statutory Bodies Conference here on Monday (June 15).

He stated that Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, has halted the practice of direct negotiations for government tender procurements.

"Now, almost all procurements are executed via tender. However, as we all know, Malaysians can be quite creative when all tenders are implemented.

Johan added that this issue has been detected repeatedly across several agencies, and the Prime Minister is taking a firm stance against these occurrences.

"I wouldn't mention this if it had only happened once. The MOF tracks these matters, and this is happening across various agencies, including the MOF itself. On this issue, the Prime Minister is taking a strict stand as part of the agenda to reform government procurement governance," he said.

Johan said the government has passed the Government Procurement Bill 2025, which strengthens accountability and enforcement actions.

"Previously, government procurement issues were treated merely as administrative matters; if someone had retired, no action could be taken against them. But now, with the Government Procurement Bill, even I am not safe after retirement.

"I could also face punitive action if I commit any irregularities in government procurement. That is among the approaches to enhance procurement regulations and governance," he said.

Also present were Public Service Department (JPA) deputy director-general (development) Datuk Dr Mohd Bakhari Ismail and Entrepreneur Development and Cooperatives Ministry secretary-general Datuk Seri Khairul Dzaimee Daud.

Others there included Universiti Teknologi Mara vice-chancellor and Association of Statutory Bodies of Malaysia president Prof Datuk Dr Shahrin Sahib @ Sahibuddin, and Malaysian Palm Oil Board director-general Datuk Dr Ahmad Parveez Ghulam Kadir.

Meanwhile, Johan noted that statutory bodies serve as key institutions within the country's administrative and development landscape.

"The role they play involves not only delivering services to the people but also driving the nation's economic development, innovation, education, investment, and social well-being," he added. - Bernama

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