Penang trashes 'crony contract' for solid waste

The Penang government has signed a contract with PLB Terang Sdn Bhd to manage the disposal of solid waste in Pulau Burung.

Chief Minister Lim Guan Eng said the state has managed to do away with a "crony project”, under which people were being charged too much without gaining any benefit.

"The state conducted consultations with the company managing the waste when the contract ended in July 2009," Lim said at a ceremony today to sign the contract.

"(We have) managed to reduce the cost (by) as much as RM11.2 million yearly or (by) 42.4 percent (over) three years.”

Lim said the two local councils (Penang and Seberang Perai) have saved RM33.5 million in this area, proving once again the effectiveness of the state’s CAT (competency, accountability and transparency) policy.

The change in concessionaire was made possible by Penang withdrawing from the solid waste management  privaisation scheme under Act 672, and deciding to carry out the job through the local councils’ own mechanism.

Integrity pact
        
State executive councillor Chow Kon Yeow said PLB Terang had been selected from 13 companies that had bid for the project.

Of the 13 who had put in a bid via a ‘request for proposal’ (RFP), five were shortlisted.

"The RFP was closed last August, after being opened for a month for applications," said Chow.

"To ensure transparency and good governance, and to ensure a culture of integrity in government administration, all applicants were required to sign an integrity pact.”