Putrajaya is currently under fire from opposition figures over leaked documents which suggested that a construction project worth RM450 million was handed out without open tender.
Attempts to verify this claim have revealed that the project was approved by the previous administration and likely continued under Pakatan Harapan.
The project in question is the new Bangunan Gunasama Persekutuan (federal general-use building) in Kota Bharu in Kelantan.
On Sunday, Umno supreme council member Mohd Razlan Rafii (photo, left) had published a confidential letter addressed to the Prime Minister's Office which indicated that the Finance Ministry had conditionally agreed that a company called PDM Builders Sdn Bhd undertake the project.
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The following day, former prime minister Najib Abdul Razak wrote about it as well, ridiculing his successors Prime Minister Dr Mahathir Mohamad and Finance Minister Lim Guan Eng for not addressing the issue.
However, checks reveal that the approval for the project began during Najib's tenure as prime minister and finance minister.
According to the Works Ministry website, preliminary earthworks began in 2016 while the value of the project was revealed by then Kelantan Federal Development Committee chairperson Mustapa Mohamed, in Najib's presence.
Mustapa said the project, valued at RM530 million at the time, will replace the existing federal building, which housed federal agencies. The new building will cater for 2,000 people, up from the present 820.
"Building this facility is proof that the prime minister (Najib) was very concerned (about) and fought for the interest of civil servants in this state," Mustapa was cited saying by Utusan Malaysia.
PM's ‘note'
Also making rounds online is another letter, purportedly from PDM Builders Sdn Bhd (PDM) and dated Nov 1, 2018. The letter contained the company's appeal to Mahathir for the project to proceed as works had already begun.
The letter purportedly contained a handwritten note by Mahathir, dated March 9 this year, which read: "Honourable finance minister. This project was granted to PDM Builders. If they reduce the cost, a new tender is not necessary".
The same letter further stated that PDM Builders had won the rights to the project through a selective tender process - meaning that bidders were invited - and referred to a finance ministry letter of approval dated April 20, 2018.
If this letter is true, PDM Builders were awarded the contract after Parliament was dissolved (April 7, 2018). Repeated attempts to seek comment from PDM Builders has been unsuccessful.
According to the company's records with the Companies Commission, the three company directors are Abu Zakir Abdullah, Siti Hajar Hashim and Muhammad Fahmi Abdul Ghani.
The company was incorporated in 2011 and posted a revenue of RM931,527 for FY2017.
Continued but at a lower cost?
When asked about the project on Sept 15, Mahathir said he would check on the direct negotiation allegations but speculated that it could have been a "continuation" of a previous contract.
Lim similarly said he would "assess" the supposed Finance Ministry letter before issuing a proper response. He insisted that he had not personally signed it.
If proven to be genuine, the letter shared by Mohd Razlan would mean that Harapan is proceeding with the deal with PDM at an RM80 million lower cost than previously budgeted for. This represents a reduction of about 15 percent.
Back in March, Lim announced that 121 BN-era projects were approved after they were renegotiated to cost less. He did not list the projects but said they had either been awarded through limited tender or direct negotiation.
While it is not illegal to award contracts without an open bidding process, awarding any fresh contracts in this manner would contravene Harapan's election manifesto.
According to Item 23 of the document, the coalition promised to reform the public procurement system to ensure open tenders would be used "extensively and transparently", especially for large projects. - Mkini
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