Putrajaya Releases Details of 101 Direct-Nego Contracts

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Putrajaya has released full details of the 101 government contracts worth RM6.61 billion that were awarded by the Pakatan Harapan administration without an open tender.

In a statement yesterday, Finance Minister Tengku Zafrul Abdul Aziz said direct awards were allowed under the Financial Procedure Act 1957 and by the Treasury rules.

TMI

He explained that such contracts are allowed under five specific circumstances:

  1. Emergency services which if delayed could disrupt services or affect national interest.
  2. Ensuring uniformity to ensure compatibility between existing equipment and newly-acquired equipment.
  3. Where a service or supply only has one source.
  4. Matters concerning national security or strategic interest.
  5. A contract involving a bumiputera manufacturer which complies with requirements.

Accounting for RM4.47 billion, the Transport Ministry topped the list by quantum. Among the directly-negotiated contracts are for the hosting the Langkawi International Maritime Aerospace Exhibition 2019 (Lima ’19), renewal of services for a flight recorder laboratory by the ministry’s Air Accident Investigation Bureau (AAIB), printer toner supplies, and Phase 2 of the Klang Valley double-tracking project.

The second biggest spender was the Defence Ministry at RM900.86 million for six contracts, followed by the Home Ministry at RM517.68 million.

The Multimedia and Communications Ministry gave out 12 contracts without open tender worth RM 380.12 million, while the Housing and Local Government ministry gave out two contracts worth RM170.79 million.

The Water, Land and Natural Resources Ministry gave out the highest number of direct award contracts at 13 but were valued at just RM5.67 million.

Contracts with multi-million price tags include:

  • RM270 million to Datasonic Technologies Sdn Bhd to supply polycarbonate biodata pages for the Immigration Department under the Home Ministry.
  • RM254.40 million to MyTv Broadcasting Sdn Bhd by the Multimedia and Communications Ministry for rental of multiplexer, infrastructure and network facilities for digital television broadcasts for three years.
  • RM222.87 million “in-service” support contract for A400M Airbus airplanes from the Defence Ministry to Airbus Military Sociedad Limitada, Spain.
  • RM204 million for maintenance, overhaul and repair of the Royal Malaysian Air Force’s fleet of Hercules C130 transport planes to AIROD Sdn Bhd by the Defence Ministry.
  • RM203.20 million for maintenance, overhaul and repair of the Royal Malaysian Air Force’s fleet of Sikorsky 61A-4 (Nuri) helicopters to AIROD Sdn Bhd by the Defence Ministry.
  • RM170.30 million contract to build, operate and maintain a solid waste disposal station in Taman Beringin, Jinjang Utara, Kuala Lumpur awarded to Bumi Segar Indah Sdn Bhd by the Housing and Local Government Ministry.
  • RM150.87 million to provide the 1PDRM Net for police by Telekom Malaysia Bhd from the Home Ministry.

Examples of “emergency” contracts included three catering contracts sought by the Home Ministry to provide halal food for police personnel stationed at the Sri Maha Mariamman in USJ, Selangor, which was the site of civil unrest in late November 2018 and the protest against the International Convention to Eliminate Racial Discrimination (ICERD).

Those three contracts amounted to RM498,871.70.

Contracts for specialised services included the RM29.9 million bill picked up by the Communications and Multimedia Ministry for the rights to broadcast the Fifa World Cup in 2018.

These direct award contracts would have been requested by specific ministries and signed off by the finance minister who was Bagan MP Lim Guan Eng at the material time.

Interestingly, Lim signed off on the Economic Affairs Ministry’s request to purchase a book titled A Better World Volume 5: Actions and Commitments to the Sustainable Development Goals.

It is unsure from the list if the ministry acquired multiple copies of the book or just a single book. The total amount paid for this procurement was RM21,022.86.

The book on the UN’s sustainable development goals can be viewed for free online.