All projects awarded through open tenders, says Shafie

Minister Shafie Apdal, whose projects in Sabah have come under fire, claims that the lowest bids do not always meet the criteria.

KOTA KINABALU: Rural and Regional Development Minister Shafie Apdal has rubbished allegations by the opposition that projects awarded by his ministry in Sabah were “overpriced” and reeked of corruption.

“All the projects involving the ministry were awarded on an open tender basis and was tendered by thousands of companies including firms from the peninsula.

“They all went through layers of filters involving the Finance Minister, PWD (Public Works Department), government representatives at the state level and officers from my own ministry,” he said.

Shafie was refuting claims by state opposition DAP which last week showed “documentary” evidence of overpriced projects in Sabah.

In disclosing the “overpriced” payouts by Shafie’s ministry, Kota Kinabalu MP Dr Hiew King Cheu said some projects were awarded at 15 times or 1,500% higher than the normal price.

He cited as an example the “rural power supply project for the connection of power grid No1” (for 2011–2012) which was awarded at a price of RM41,736,809.77.

He said the lowest tender price was only RM7,775,000. He said the difference between the quotes was RM33,961,809.77.

Hiew said 49 of the 129 projects announced for Sabah were awarded at exorbitant prices.

“None of the projects went through a tender board and most of the companies awarded the projects are RM2 companies.

“Some of the contractors involved are found to be closely linked to certain senior BN-Umno politicians from Sabah.

“We strongly believe there is a strong element of corrupt practice and abuse of power,” Hiew had said.

Lowest bid don’t always win

In his rebuttal, Shafie said that low bids do not necessarily mean the contract would go to that bidder.

“There’s a committee that fixes the criteria. The lowest bid doesn’t necessarily win the project.”

“For instance, if a project costs RM100 million and a company bids for it at RM20 million, imagine yourself whether or not it can implement the project.

“Must we compromise just because it was the lowest bid and award the company the project?” he asked.

He said he was sure that Hiew was aware of the procedures involved in bidding for a project and that any decisions made by the committee must be forwarded to the Finance Ministry before the final decision is made and contract awarded.

“It means that the final say does not lie with us,” he said.