Taiping MP: MACC must investigate Spanco RM700m deal

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Alleged non-compliance with the government tender process under Muhyiddin’s leadership.

The Malaysian Anti-Corruption Commission (MACC) has been urged to investigate the termination of a company by the previous government, which resulted in a replacement company receiving an additional RM700 million payment.

Taiping Member of Parliament Wong Kah Woh said the claims made by Berjaya Group founder Tan Sri Vincent Tan, who filed a suit against the government and Spanco Sdn Bhd over a multi-million-ringgit vehicle fleet concession, was serious and clearly showed non-compliance in the tender process by the government under the leadership of Tan Sri Muhyiddin Yassin, the then prime minister.

“The MACC should investigate this matter urgently. Among the issues that must be investigated are why the letter of intent (LoI) issues was cancelled; what was the decision of the tender committee at that time; why was the government’s tender in 2019 was not complied with, and what was the justification the government led by Muhyiddin giving a contract to Spanco, which is said to be RM700 million higher,” he said in a statement.

Yusof Mat Isa

Yesterday, Tan said his company had filed a suit against the government and Spanco Sdn Bhd over a multi-million-ringgit vehicle fleet concession.

Tan claimed that the group, in a consortium with Naza Group, had been picked to manage the fleet concession by the previous administration through a LoI issued in 2018.

Berjaya formed a 49:51 consortium with Naza in 2018 to jointly bid for the lucrative contract, which reportedly involved around 12,500 vehicles worth an estimated RM300 million annually starting after the fifth year.

Tan said the consortium had received the LoI from the Finance Ministry to replace the fleet management.

He claimed that the LoI was terminated unfairly before the actual award was set to be announced.

In February 2018, the government called for proposals for the contract to supply, maintain and manage its fleet of official vehicles for the next 15 years.

Proposals were reportedly received from at least seven companies.

Aside from the Naza-Berjaya consortium, other bidders were Sime Darby Bhd, DRB-HICOM Bhd, Samling Group, Comos, Go Auto and Spanco, which had managed the concession since 1994.

According to Tan, the Naza-Berjaya consortium had won the bidding with the lowest offer.

“We won the contract as the lowest bidder and got the LoI. But then the government changed, and Tan Sri Muhyiddin Yassin became the prime minister. Three months after that, we got a notice that our LoI has been terminated.

“(The government) terminated our LoI and gave the tender to Spanco. Our tender was RM700 million cheaper than Spanco,” he remarked.

Tan questioned why the government had agreed to pay RM700 million more to Spanco. – NST