Padi seeds tender: Was Finance Ministry duped?

The controversial awarding of a RM164.8 million tender to allegedly unqualified suppliers of padi seeds has raised more questions, given that the Finance Ministry's reasons for approving it are said to be invalid.

In a leaked purported letter dated July 20, 2012, the ministry's government procurement division states that although bidders were found to have breached the tender criteria, approval was given because of the "urgent demand for padi seeds" and "urgency factor for the current planting season".

The letter, released by PAS vice-president Mahfuz Omar in Parliament last Wednesday, was addressed to Agriculture and Agro-based Industries Ministry secretary-general Mohd Hashim Abdullah.

The two reasons cited were first questioned in an anonymous article, headlined ‘Skandal Padi Benih Yang Terburuk Dalam Sejarah Industri Padi/Beras Negara'(The worst padi seeds scandal in the history of the national padi industry).

This has been widely circulated on the Internet since last month, making more allegations related to the tender issue.

"The Finance Ministry has been duped by (Agriculture and Agro-based Industries Minister) Noh Omar. There was no urgent demand because the expired tender can be extended monthly, which is a normal practice of the Agriculture Ministry," claims the letter-writer.

"The issue of urgent demand did not arise because the existing seeds can meet the demand until March 2013, and the planting seasons of different states are not concurrent."

The writer, who signed off as ‘Anxious Member of MoA [Agriculture Ministry]', pointed out that Noh was worried that he may not be reinstated in his portfolio if the general election is called early and, hence, wanted the tender awarded while he was still in power.

According to both the letter and the tender notice posted on the Agriculture Ministry website, the tender was for the supply of padi seeds with effect from 2013.

The notice shows that the tender was called before early March - almost one year ahead - and that the outcome was announced on the website in September.

'Unusual change in duration'

Another contentious issue raised is the three-year duration of the tender, which the letter writer claimed is not the Agriculture Ministry's practice, as the convention is two years. 

Both the tender advertisement and Finance Ministry letter state that the tender is initially for three years from 2013 to 2015.

Eventually the Treasury only approved the tender for two years, from 2013 to 2014, involving an estimated value of RM164.8 million, according to the letter.

To ascertain the claims made, Malaysiakiniinterviewed an industry player who requested anonymity as he has business ties with the government.

He said that prior to this year, the tender was usually called two or three months before the expiry date of the previous contract, unlike this one, which was nine months ahead.

"The article must have been written by an insider. The contents are accurate," he commented after reading it.

"The general election is coming. Maybe Noh is scared that BN will lose, so he wanted (the deal to be inked) quickly."