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10 APRIL 2024

Thursday, July 5, 2012

RM2mil Selangor Raya hampers supplied without open tender



The Selangor state government under Pakatan Rakyat has been accused of giving out tenders for the supply of Hari Raya hampers worth up to RM2 million since 2009 without going through its open tender policy.

The distribution of free hampers to the poor and underprivileged during Hari Raya and Deepavali was initiated and conducted by the state health, plantation workers, poverty and compassionate government committee headed by executive councillor Dr Xavier Jayakumar.

xavier jayakumar pc 190110 02However, Xavier has denied the allegation.

The company that is said to have received the biggest chunk of the tenders, amounting to RM1 million, is a rice distribution firm in which a Johor Umno assemblyperson is a director.

Well-placed sources in the Selangor government toldMalaysiakini that the hamper tenders given out in 2009, 2010 and 2011 were worth RM490,000, RM150,000 and RM1.44 million respectively.

"They were given out through direct negotiations," said a source, who has access to official documents to back the claim.

RM3 million budget for this year's supply

For this year, Xavier has submitted a budget for more than RM3 million for the purchase of 1,000 hampers for each of the 56 state constituencies in Selangor, but the proposal is still under discussion, the sources said.

According to the sources, except for one tender, all the others are for more than RM50,000, ranging from RM52,000 to RM343,000 each.

These procurements are clearly against the state government rule that any procurement above RM50,000 must be made through open tender - unless under special circumstances, such as an urgency or for highly specialised products.

The rule was put in place by Pakatan Rakyat after it captured the Selangor government in 2008 in an effort to promote transparency and minimise corruption.

NONEThese tenders could not qualify for exemption because they involved items such as Raya cookies, rice and daily necessities. Also the supplies are not urgent, the sources claimed.

The sources further revealed that these tenders were given to different companies each year and among these were some prominent retail stores such as Tesco, Giant, Econsave and Pasaraya 99 Speedmart.

However, one company was given tenders in all three years, with the total amount close to RM1 million, they revealed.

Malaysiakini's search with the Companies Commission of Malaysia showed that this company, Wisebridge Sdn Bhd, was registered in 2002 as an importer and exporter of food products and food solutions.

Interestingly, one of its three directors is the Umno assemblyperson for Bukit Serampang in Johor, Tahir Mohd Taat. He is also the deputy chief of Pagoh Umno division, which is led by Deputy Prime Minister and Umno deputy president Muhyiddin Yassin.

The company's website states that Tahir is its chairperson, and that he is an Umno division leader and state assemblyperson. 

When contacted on Tuesday, Xavier denied any misconduct and passed the buck to the state financial body Selangor Economic Planning Unit (Upen).

He said the procurement process was done by Upen and his office had no role in it.

"I have no say over who gets (the tenders) and who does not get... There are so many companies out there, Upen people have the experience to check and choose (the suppliers)," Xavier said.

'All procurements through open tender by Upen'


The Sri Andalas assemblyperson also stressed that all procurements were done through open tender by Upen.

"It is open tender, not direct appointment, believe me. All go by open tender. If it is through direct negotiations, it must get approval from the state financial officer."

NONEXavier explained that his committee would submit a project paper with the proposed budget to the state exco for approval each year.
Once approved, the procurements are done by Upen, and subsequently Upen officers would get back to his committee on the implementation of the programme.

Asked whether he preferred open tenders or direct negotiations for the free hamper programme, Xavier replied: "It is not my opinion, it is a state Treasury regulation. Nothing to do with me."

He also confirmed that the programme for this year is still under discussion by the state government.

However, Xavier's argument was rebutted by the sources who claimed that usually, the state exco submits the project proposal and also advises Upen on the procurement process and recommends several suppliers to Upen.

On Tahir's directorship in Wisebridge, Xavier said he was not aware of it, and that the company may have won the tender with "a good price".

Malaysiakini contacted Wisebridge general manager T Rajakumar who explained that Tahir "is only a director of the company".

"We are a genuine company. From time to time, we are asked (by the Selangor government) to give quotations, and we give our quotations," Rajakumar said.

Tahir, when contacted, said he was not aware that the company had business dealings with the Selangor government.

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