Graft watchdog C4 Center has reminded that the involvement of royalty in state procurements should adhere to international standards of heightened due diligence and disclosure mechanisms.
The group criticised the government’s apparent lack of transparency in conducting due diligence, following the appointment of Selmax Sdn Bhd in managing the Selangor Intelligent Parking (SIP) programme.
On Nov 17, Malaysiakini reported that the Raja Muda of Selangor, Tengku Amir Shah, held a 16.5 percent beneficial stake in Selmax, which has received three concessions thus far under the state’s parking privatisation programme.
The C4 Center said the procurement process failed to mitigate corruption risks and eroded public trust.
“Royal households hold symbolic constitutional roles and carry significant moral and institutional influence, and for this reason, international procurement norms treat such individuals as politically exposed persons (PEPs) whose involvement must trigger enhanced due diligence and disclosure mechanisms.
“In the case of SIP, these protections appear to have failed on several levels. The stake held by the Raja Muda was not disclosed by the Selangor state government, despite its direct relevance to public trust and the integrity of the tendering process.
“Whether the state was aware of this beneficial ownership and chose not to reveal it - or was unaware due to insufficient verification - both scenarios point to serious governance gaps,” it added.
Further, the group also said that royalty-linked interests could create an “unavoidable perception” of an unequal playing field, while risking putting public institutions under pressure.
“What the public now requires is assurance that no preferential treatment influenced the concession award.”
C4 Center also urged the Selangor government to explain what conflict-of-interest checks were conducted, whether any declarations were made, and how decision-makers were shielded from potential influence.
Without these explanations, they said, the SIP also risks eroding confidence in the broader system of state procurement.
Highlighting the discrepancies in the concessions procurement process, the group also urged the government to revert the SIP to its contracting stage and issue new requests for proposals.
They stressed that future contracting processes should prioritise access to information and public disclosure.
“The entire process of concession granting - from the vague processes, unexplained decisions, and attempts to shield information - only emphasises that the methods by which state governments contract private parties remain ones that are vulnerable to abuse.
“Sporadic announcements by government representatives are insufficient, while conflicts of interest are only revealed to the public through independent searches.
“These are abject failures of the state government in upholding good governance principles, especially here, where the concession is one that directly affects the public’s use of infrastructure,” it added.
It also criticised the state government’s denial of Freedom of Information (FOI) requests regarding the procurement process, and urged the amendment of the Official Secrets Act 1972 (OSA) to remove broad discretionary powers.
How the issue unfolded
Previously, Petaling Jaya MP Lee Chean Chung also criticised the lack of transparency in the procurement process, highlighting that at the moment, even “basic documents” related to the SIP scheme are not accessible.
He said he received a resident’s complaint that a request under the state’s FOI Enactment 2011 was denied because the documents were deemed classified under the OSA.
Earlier this month, PSM expressed similar criticisms, with the party’s central committee member Gandipan Nantha Gopalan questioning the nature of the information that would require “protection” under the OSA.
The SIP, before its launch, had faced strong backlash from Lee, other MPs, as well as residential and environmental groups.
The three local councils that have awarded concessions to Selmax for the management of the SIP system are the Shah Alam City Council (MBSA), Subang Jaya City Council (MBSJ), and Selayang Municipal Council (MPS).
Under the concession agreement with Selmax, the local councils would each be compelled to share revenue from parking fees, monthly passes, two-hour zones, and compounds in a 50-40 percent split with the company, which is set to receive the bigger share.
The remaining 10 percent is intended to go to Rantaian Mesra Sdn Bhd, a wholly owned unit of Menteri Besar Selangor (Incorporated) (MBI) tasked with overseeing the SIP rollout. - Mkini
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.