No more direct deals for govt contracts
Every procurement will be made by open tender, says Paul Low.
UPDATED
KUALA LUMPUR: The government has decided to stop the practice of direct negotiations in its procurement system, according to Minister in the Prime Minister’s Department Paul Low.
“All procurement will be made under open tender and safeguards will be put in place to ensure that awards are given on the merits of the submissions,” he told reporters today after delivering a speech at a forum organised by the Malaysian Institute of Corporate Governance (MICG).
He acknowledged that the procurement system had provided the most common avenue for economic patronage, causing public distrust of the government.
Such practices, he added, were seen as encouraging rent-seeking and denying opportunities to entrepreneurs who lack political connections.
“Further measures will be taken, such as eradicating rent-seeking suppliers and reducing unproductive multilevel subcontracting,” he said.
Low did not say when the revised system will be implemented.
In his ministerial address at the MICG forum, Low said the government would use an “integrated framework” in combating corruption as opposed to an ad hoc approach.
“An ad hoc approach cannot possibly succeed. Combating corruption in the construction industry is not similar to doing it health care as they are different in nature.”
He said the integrated-framework approach was rolled out two weeks ago and would require the strengthening of enforcement agencies through several measures, such as improving their professionalism and providing additional safeguards for their independence.
During the press conference, he said a key post—that of Chief Integrity Officer (CIO)—would be created in every ministry to fit into the framework.
Most of the CIOs will be recruited from the Malaysian Anti-Corruption Commission.
The internal auditors of every ministry will also play a key role in the framework. Although they will continue to report to secretary general of the ministry, they will have the independence to report directly to the Auditor-General should there be any irregularities.
“As such, the AG can act as and when needed,” Low said. “The AG can also have private sessions with the ministers.
“This is a more efficient approach. More immediate corrective action can be taken instead of waiting two years later, for example, to take action.”
FMT
