No Open Tender, RM2 Firm Got Forest Contract Through Directors’ “Vast Experience”

1787
- Advertisement - [resads_adspot id="2"]

A letter purportedly stating that the Perak state government had approved the permit for a forest plantation development project during the committee meeting held in November had gone viral.

Irregularities:

  • Contract given through direct negotiation, not open tender
  • Project approved through committee chaired by mentri besar
  • Concessions awarded based on company directors’ alleged “vast experience”, their work with Forestry Dept
  • RM2 company set up two months after GE14

On Tuesday (Feb 12), Perak Umno asked the state government how a newly-formed company with a paid-up capital of only RM2 could be awarded 400 hectares of land concessions over two forest reserves, and if an open tender was called.

According to Perak mentri besar Ahmad Faizal, the concessions were given through a Forestry Committee chaired by him.

“There are five members in the committee – myself, as the chairman, the Forestry Department director, his deputy and two state executive councillors Paul Yong and Asmuni Awi,” he said.

He revealed that the decision to grant the project was also based on the explanations and recommendations by the relevant department heads in the state government.

“I don’t know the two directors but based on their experience and their work with the Forestry Department, we approved the project.

“The directors of the company have vast experience in forest plantation, and the company is working closely with the Malaysian Timber Industry Board for forest land development, and thus the project was awarded to them,” he told a press conference today.

The development project involves areas in Kledang Saiong and Bukit Kinta Forest.

Ahmad Faizal also clarified that the 400ha was not part of a forest reserve but were situated in a secondary jungle.

“As for the development project, it does not involve the cutting of a single tree, but instead it is to replant trees,” he added.

On why the business address of the company listed on the Companies Commission of Malaysia (SSM) belongs to a law firm in Taiping, Ahmad Faizal said the law firm was the company secretary for the company awarded the project.

“Before I was in the government, I had several companies that were placed under company secretaries who are also lawyers. Such practice is quite normal,” he explained.

“I don’t see any wrong if the company shares an office with several other offices, or a law firm is used as a company secretary. If that is an offence, then I am not aware of it,” he added.

On Kampar MP Thomas Su lodging a report with the Malaysian Anti-Corruption Commission (MACC) on the alleged irregularities involving the project, Ahmad Faizal said it was a “fantastic move” on the part of Su.

“I leave it to MACC to carry out their investigations, and I urge them to do so thoroughly to ensure no wrongdoing by Pakatan Harapan (PH).

“Su did come to see me over the matter, and I told him if he feels there is a need to investigate then he should do so,” he added.

Asked if Su’s actions were against the spirit of PH, Ahmad Faizal said he told the MP that he could lodge a report if he was not satisfied with his explanation.

Su had on Monday (Feb 11) questioned the state government for awarding the 400-hectare land concession to a five-month-old company with a paid-up capital of just RM2 that was set up in July last year, about two months after GE14.