Why No Open Tender for Lucrative DBKL Contract?

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Kepong parliamentarian, Lim Lip Eng, has alleged that a lucrative contract awarded by Kuala Lumpur City Hall (DBKL) to manage 40,000 parking lots in the city was done without an open tender.

  • Contract to manage 40k parking lots awarded to YWP, which has Umno members such as Tengku Adnan in its management board and board of trustees
  • Question of where is the money collected for vehicle-clamping
  • Suggestion to suspend all contracts related to operation of parking machines, clamping and road summonses until complete review of contracts

The lucrative concession contract to collect parking fees (from parking machines) was awarded to the Federal Territories Foundation (YWP) in 2015.

Lim, at a press conference on Friday, questioned why DBKL awarded the contract without an open tender to YWP. He said the issue of managing parking machines is a basic process that all local councils should be able to manage.

“Why does DBKL need to outsource the contract, and also without an open tender? Collecting parking fee is the basic fundamental duty of a local government.

“I believe that DBKL has enough talents and resources to handle the parking machine which collects the parking fee,” Lim told a press conference after a surprise visit to YWP.

During his session with YWP, its legal advisor Mohd Fadzil Ab Hamid briefed Lim with information related to the concession of parking machine operations.

Lim said that since the concession contract was awarded to YWP in 2015, it had collected RM20million.

In his meeting with KL Mayor Tan Sri Mohd Amin Nordin Abdul Aziz two days ago, Lim said he had suggested to the latter to suspend all contracts related to the operation of the parking machines, clamping and also road summonses until a complete review and research was made for the contracts involved.

“I suggested this as I feel that many concession contracts have been awarded unfairly. Since there wasn’t any open tender, it is fair for us to review all the contracts.

“If there were any discrepancies in the contract, we need to correct it. If the contract was reasonable and fair, we can continue with it but for time being I have suggested to the mayor its suspension,” he said.

Confusion also arose when questions related to clamping of vehicles could not be answered by YWP as they said that the issue (clamping) was not under its purview.

“According to Fadzil, the operation of vehicle clamping and collection of fines were not under YWP. But DBKL had already told us that those operations were done by a contractor which was “supposed” to be under the purview of YWP.

“I also understand that through the agreement of the contract, for every RM1 paid for parking, DBKL receives only 35 percent from it.

“There are way too many confusions and irregularities in this issue here. So now, where is the money collected through the fine for vehicle-clamping?” he said.

Lim said YWP, which was a private company, also had Umno members in its management board and board of trustees.

Among them were YWP’s executive director, Datuk Seri Syed Ali Alhabshee (Cheras Umno division chief) and YWP’s board of trustee member, Datuk Seri Tengku Adnan Tengku Mansor (Umno secretary-general) who was also the Federal Territories Minister when the contract was awarded.

YWP, chaired by the Federal Territories Minister, was set up to render aid to low and medium-income people. According to its website, it also aimed to head community development efforts in the areas of education, economy, social, religion and technology throughout the Federal Territories of KL, Putrajaya and Labuan. – NST