Allocate more funds, widen scope for Audit Dept - Johor Baru MP

 

PARLIAMENT | Akmal Nasir (Harapan-Johor Baru) has urged the government to increase the allocation for the National Audit Department and widen its scope so that it can audit concessionaires that handle government funds as well.

This is after he explained how corruption and wastages can occur through the awarding of contracts for concession operations.

“The National Audit Department’s allocation for 2022 was reduced by RM4 million to RM154 million.

“Let us not forget the good work this department has done to expose corruption cases such as 1MDB, NFC and the littoral combat ship (LCS) project that is still facing problems until now.

“Hence I would like to propose additional funding be given to the National Audit Department and for its scope to be broadened to include those companies who handle government funds such as concessionaires,” Akmal (above) said while debating Budget 2022 in the Dewan Rakyat today.

As an example of how wastages can occur through the awarding of concession contracts, he brought up the road maintenance concession in Johor, which he said is mostly monopolised by eight companies.

In particular, he questioned what was so special about a company that received a concession contract for road maintenance under the Malaysian Road Records Information System (Marris) in Johor worth RM350 million last year.

Akmal claimed the company had RM1 million in capital but had received over RM1 billion in government contracts over a three-year period.

He also alleged the company does not have any work experience and that there is only one company shareholder, who is also the director.

Report lodged in February

It was reported back in February that Senggarang assemblyperson Khairuddin A Rahim had lodged a report with MACC over the road maintenance concession contracts in Johor.

Senggarang assemblyperson Khairuddin A Rahim

He had also singled out the company that received the concession contract under Marris, saying it is like a monopoly that can drive smaller bumiputera contractors bankrupt.

Malaysiakini has attempted to contact the company in question over these allegations.

Akmal said another way for wastage to occur through concession contracts is that the final price the government has to pay tends to become more expensive than before concessionaires existed.

“When you privatise (something), the cost should be more effective and cheaper.

“However, through this concession method, not only in Johor but in several other states, the real price paid by the government is higher than before,” he said.

Akmal further claimed that these concessionaires also distribute the contract work to smaller contractors at lower prices than if the contractors had been hired directly by the Works Department.

“Why are there these middle people who are receiving the windfall?” he questioned. - Mkini