Another 15 Year Monopoly To Burden The People. The Government Does Not Even Know How To Service Cars ? That Stupid Ah?

There is a very big disaster in these types of wasteful contracts. Do read my conclusion.

This is from The Star here.

Long-term govt contracts highly sought-after business

tender to manage vehicles attracted biggest automotive groups in country

15-year concession worth RM300mil from fifth year onwards ??

(OSTB : Huh? So what is it worth in the first FIVE years?? Low quality journalism from The Star.)

manage fleet of vehicles – used by ministers, govt officers, department, police

size of the contract varies from year to year, depending on fleet requirement

(OSTB : Huh? So no fixed quantities or amounts?)

Spanco expiry of 25-year contract in December

govt require at least 32 new Toyota Vellfire for ministers 
These luxury minivans to be replaced every four years

(OSTB : Oh I see, this means every FOUR years the government will buy new Toyota Vellfires.  If you change the Toyota Vellfire every FOUR years, then there is not much repairs and maintenance required except for regular servicing, changing engine oil etc. Does the government need a separate company to buy a new Vellfire for you every four years?? Is the government that stupid?)

also 3,000 Honda Accord for higher-ranking government officers

1,300 mobile patrol vehicles over five years
8,000 Proton Persona and Saga 
around RM1.5bil over five years to purchase new vehicles
 
govt pay monthly rental for each vehicle 
amount excludes fixed monthly bill for repairs, maintenance 

Spanco secured contract in 1994
each vehicle leased for five years, before replaced with new car

(OSTB : If you change your cars every FIVE years, then there are not much repairs and maintenance required except for regular servicing, changing engine oil etc. Unless it is a police car that chases crooks every night.)

end-to-end fleet management with five-year replacement keeps fleet current

ensuring maintenance cost of vehicles capped 

(OSTB : Woi kepala bapak - of course lah if you buy a new Toyota Vellfire every FOUR years, the maintenance cost will be minimal. Just change tyres and engine oil. There should be no major repairs except for regular servicing. And the Ministers do not use Vellfires to chase after crooks on the highway.)

“We provide unlimited repair and maintenance services for the fleet to ensure that a maximum number of cars are always on the road, ” Spanco’s chief executive officer Datuk Hamzah Mohd Salleh said.

(OSTB : I say Brader Datuk Hamzah CEO of Spanco, can you offer unlimited repair and maintenance service for my 22 year old Mercedes Benz  CLK? It is a fantastic car. No major breakdowns in 22 years.  

If your contract says the government must pay for new cars (Vellfire, Proton etc) every FOUR YEARS or FIVE years then what major maintenance or repairs are you talking about? Unless it is a police car that chases crooks every night.) 

Spanco buys, on average 2,000 - 3,000 vehicles a year
Spanco spent over RM2.5bil on new cars during contract 
A lot of money goes towards purchasing new cars

(OSTB : So the govt basically BURNS our taxpayers money to pay a private company to BUY NEW CARS for the govt. P_k_mak bodoh betul. The govt has 1.6 MILLION Penjawat Awam. You mean NONE of these 1.6 MILLION Penjawat Awam knows how to buy a new car for the government?)

company has two flagship service centres in Batu Caves and Bangi
supported by network of over 200 workshops 

OSTB : 

• Nauzubillah. What ??
• This is a total ripoff. How stupid can the government be? 
• The govt pays the 'car management company' to maintain the cars. 
• And what does the car management company do? 
• They send the cars to Ah Fook the roadside mechanic shop who does the real service and maintenance.  
• It is just adding another layer to the govt's expenses - burning up taxpayers money.

How stupid can you get? Why not the govt just send their cars direct to the "network of over 200 workshops"  ? Then you save paying the useless 'commission agent' who does NOT add any value. 

My comments :  If the contract stipulates that the govt must pay for new car replacement EVERY FOUR YEARS or FIVE years then why do you even need this fleet management contract? 

A FOUR year old car will still be in good shape, especially luxury cars like the Vellfire which are driven by chaueffeurs. They are NOT used for drag racing. They need minimum maintenance. Just oil change and tyre change.

This is a ripoff contract.  It is better if the govt insists that for the same price or amount of money  there will be NO new car purchase for say EIGHT years AND the fleet management company must still promise a 99% availability factor.   Then you may save the taxpayers some money.

25 years ago this fleet management contract started off with the wrong intentions. The wrong niat or wrong nawaitu. It was just a ripoff contract. 

It was during the general euphoria during the age of privatisation.  Everything was provitased. Even cuci jamban (toilet cleaning contracts) in govt departments were privatised - for 25 years, 30 years and so on.  The cuci jamban contracts were worth billions - cuci jamban for prisons, universities, govt hospitals for 25 years or 30 years were all lumped together into gigantic cuci jamban concessions.

This is no different. Instead of cuci jamban it is motor car maintenance - or the lack thereof. 
 
In this car maintenance contract, the govt pays for their cars to be maintained by the car maintenance company. They in turn send the cars to Ah Fook the roadside car mechanic shop who does the real work. So the car management company plays 'commission agent'. That is all. 

JUST ANOTHER LAYER ADDED SO THAT SOMEONE CAN MAKE SOME MONEY. 

And then every four or five years, the cars must be replaced, new cars have to be bought.  All paid for by you and me the taxpayer.  So what major maintenance are you talking about? A four or five year old Vellfire or Honda Accord needs very little maintenance.

When you send your car for service and repair to your mechanic, he will call his parts supplier. Within minutes the Indian boy or Malay boy will arrive on a motorbike with the requested parts. This is how the system works. Your mechanics DO NOT maintain a full range of spare parts in their shops. Who has that kind of capital? Cari mampus ke?   

To serve the needs of a govt operating over 14 states and territories they have ONLY TWO of their own maintenance depots. JUST TWO !!

Do you seriously think they will even maintain ALL the spare parts for Honda Accords, Vellfire, Proton etc? You must be dreaming. Whenever they need spare parts they will just call the Toyota parts supplier or the nearest Proton parts supplier. Who will be so stupid to carry so many car spare parts by themselves. 

Now here is my conclusion. 
This has to do with why our Ringgit is crashing. 
Why our country is going backwards. 
Why there is little new wealth creation in the economy. 
Why our labour force is less productive and so on.  
It is all connected.

The greatest loss in these types of quite useless, commission agent type contracts is that you do not add any real value to the economy.  You do not create new wealth.

It is just putting an extra layer between two economic node points and collecting the difference with no value added.  

The govt has the cars.
You collect the cars from the govt and send them to the mechanic.
The mechanic charges you say RM100. 
You charge the govt RM200. 
You pocket the difference RM100.

What value added is this? 

The greatest tragedy is that the skills of the best and the brightest in the country are  wasted. Or they are put to no great use.

Lets take the case of  Spanco’s chief executive officer Datuk Hamzah Mohd Salleh.  

What value added skills has Hamzah Salleh learned as a CEO of Spanco? 

Hamzah Salleh has learnt how to :

collect cars from the govt, 
collect RM200 from the govt 
send the cars to Ah Fook the roadside mechanic, 
pay Ah Fook RM100 and 
pocket the balance. 
Thats it.  

That is all you have achieved in life? 
And at a fat salary I am sure.

And what can Hamzah Salleh pass on to his sons and daughters? 
How are no value added monopolies going to create the Bumiputra Commercial and Industrial Community (BCIC)?

And this useless, dumbing-down-even-the-brightest   model has been  repeated a thousand times throughout the economy.  Buat kerja bodoh pun dapat gaji tinggi.

That is why our economy is not moving. 
There is little value added. 
There is little new wealth creation. 

Just add an extra and useless layer to existing economic activity with no value added. Then expect our economy to grow, expect our economic output to catch up with South Korea, Japan, Germany, Singapore etc. You must be joking. No - you must be stupid. No - you are stupid.

There is another useless, no value added monopoly being created folks. I will write about this soon. Even royalty is involved. 

The useless, non value adding monopolies never stop. Non stop.