PUTRAJAYA: Irregularities in government procurement processes, including the tailoring of tender specifications to favour certain vendors, have been detected, says Tan Sri Johan Mahmood Merican.
The Treasury secretary-general said there have been incidents showing that while the tender process initially appeared competitive, evaluations of financial and technical aspects ultimately left only one qualified company.
This was because the specifications had been tailored to favour a particular vendor.
Johan noted that Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, had halted the practice of direct negotiations in government procurement.
“Now, almost all procurements are carried out through open tenders.
“However, as we all know, Malaysians can be quite creative when all procurements are implemented through tenders.
“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 towards a single vendor,” Johan said in his opening address at the 2026 Malaysian Statutory Bodies Conference yesterday.
Elaborating further, he said this had been detected repeatedly across several agencies and the Prime Minister is taking a firm stance against such practices.
“I wouldn’t mention this if it had happened only once.
“The Finance Ministry (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 also said the government had passed the Government Procurement Bill 2025, which strengthens accountability and enforcement measures.
“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 Act, even I am not safe after retirement.
“I could also face punitive action if I commit any irregularities in government procurement,” he said, as reported by Bernama.
Meanwhile, Johan noted that statutory bodies serve as key institutions within the country’s administrative and development landscape.
He said these entities play more than just a role in delivering services to the people as they also drive the nation’s economic development, innovation, education, investment and social well-being.
