Topic: Project Cartel
Coverage by: Free Malaysia Today
Related news: https://www.freemalaysiatoday.com/category/nation/2021/04/08/urgent-reforms-needed-in-wake-of-billion-ringgit-project-cartel-says-c4-center/
PETALING JAYA: Reforms to public procurement processes and sanctions against offenders are needed to address future leakage of government funds, an anti-graft group said today.
This comes after the Malaysian Anti-Corruption Commission (MACC) took down a “project cartel” this week that had been awarded RM3.8 billion worth of government tenders.
Insiders within government agencies are said to have helped the cartel’s companies to be awarded tenders.
MACC seized nearly RM50 million in cash and assets and has frozen more than 600 bank accounts containing RM100 million.
The Center to Combat Corruption and Cronyism (C4 Center) said the exposure of the cartel’s activities exemplified the “deep rot” within the government procurement system, with a corrupt few taking projects and money away from more deserving companies.
“Ultimately, the fact remains that a system that allows for such a cartel to be formed is inherently rotten to the core.
“If Malaysia hopes to attain good governance goals and stamp out corruption within the system, this has to be addressed swiftly and firmly,” it said in a statement.
C4 said immediate reforms must be made to the civil service to stamp out those working with syndicates from within.
MACC chief Azam Baki had said heads of departments were turning a blind eye to staff misdemeanour and ethical problems to protect their departments’ reputation.
In response to the arrests, chief secretary to the government Mohd Zuki Ali issued a statement pledging full support in the fight against wrongdoing and embezzlement. He said the Public Service Department had been ordered to rotate its staff in sensitive departments.
C4 said the rotation of staff was only an ad hoc measure and may not resolve the inherent vulnerabilities within the procurement system itself.
It said the deterrents must be harsh enough to dissuade people from temptation. This included hefty salary cuts or suspensions that “would not only serve to punish the wrongdoers, but cripple those offering bribes as well”.
Those forced into such situations could become whistleblowers, it said.
C4 said changes must be made to the procurement system to boost transparency, such as publication of tender decisions so that the public can see the rationale behind the selection of any company for a project.
It also advocated the extension of the auditor-general’s powers to check government contracts without the finance minister’s consent.
This would give them more independence to look into “suspicious” awards as well as the strengthening of parliamentary Public Accounts Committees to allow them to better punish instances of wrongdoing.
C4 questioned what had happened to efforts initiated by the previous Pakatan Harapan administration to establish a public procurement law, as announced by former finance minister Lim Guan Eng, which proposed to stem losses in public funds due to leakages and provide checks and balances.
