Wan Saiful urges MACC to probe school meal tenders, flags firms with residential addresses

 

Tasek Gelugor MP Wan Saiful Wan Jan has urged the MACC to investigate 213 Education Ministry school meal contract awards worth RM1.32 billion, citing concerns over recipients’ business addresses, financial capacity and experience.

He said more than 100 contract recipients listed addresses that appeared to be residential properties, villages or apartments, while only about 70 were clearly located at commercial premises.

Wan Saiful (above) stressed that registering a business at a residential address was not inherently suspicious, but said the ministry should explain how it ensured that successful bidders could fulfil contracts of such value.

“For contracts worth millions of ringgit, the ministry must establish how cooking facilities and operational capacity can be verified.

“The highest contract, worth RM38.7 million, is registered to an address in a residential area,” he told a press conference in Parliament today.

The 213 awards he mentioned today involved cooked food supplies for schools and institutions under the ministry from 2027 to 2029. They account for 214 decisions announced so far, excluding one contract for a women’s shelter in Johor worth RM856,440.

Another 31 decisions have yet to be announced.

Substantial variations

Wan Saiful said all 213 contracts had an average value of RM6.19 million, with the largest worth RM38.7 million and the smallest RM1.13 million, a difference of about 34 times.

He noted that 53 contracts were worth RM10 million or more, collectively amounting to RM722 million, or 54.8 percent of the total value.

While acknowledging that contract values could vary according to school categories and student populations, he questioned the substantial differences between certain awards.

“Contract awardees also varied; some were enterprises, but there were also business entities, private companies, corporations, and organisations,” he added.

Wan Saiful further highlighted 25 companies whose names appeared to indicate business activities outside food supply, including security, pest control, automotive, construction, engineering, plastics, environmental services and textiles.

Together, these companies received contracts worth about RM113.5 million, or 8.6 percent of the total.

He questioned whether these companies were qualified or licensed to supply cooked food to schools and called on the ministry to clarify their relevant experience and credentials.

Is there sufficient working capital?

The parliamentarian also asked whether contractors had sufficient working capital to sustain operations if government payments were delayed.

Based on an average contract value of RM6.2 million over 24 months, he estimated that a contractor would need about RM258,000 monthly to cover operating costs.

“If payments are delayed by three months, the company would need about RM774,000. For these contracts, a three-month delay means having RM900,000 in the account,” he said, adding that 65 contracts involved monthly values exceeding RM300,000.

He called on the ministry to disclose how it assessed bidders’ financial standing, including their account balances, paid-up capital and ability to maintain cash flow.

Wan Saiful added that companies had also approached him with concerns that new businesses with little experience were securing high-value contracts, potentially displacing established suppliers.

He further cited allegations that brokers may have arranged the tenders, stressing that the claims required investigation rather than being treated as proven.

“I am not in a position to prove or investigate these allegations myself, but these matters have been raised, and I hope a transparent investigation can be conducted,” he said.

He urged the MACC to examine all 213 awards, including tender documents, evaluation processes, financial qualifications, overlapping directors and business addresses, as well as patterns of tender participation.

He also called for an investigation into alleged cartel activity or bid-rigging if sufficient evidence emerged.

Review announced awards

The opposition MP urged the ministry to review the announced awards and, if necessary, suspend the remaining 31 decisions pending clarification.

He said the issue extended beyond procurement transparency to the safety of schoolchildren, particularly those living in boarding schools.

“This concerns our children in boarding schools, including hygiene, the quality of raw ingredients, storage, transportation and the companies’ ability to deliver the best for our children,” he said.

“The ministry needs to monitor contractors throughout the contract period, not just during the tender process.”

Wan Saiful said the calls for scrutiny were not intended to punish companies before wrongdoing had been established, but to ensure transparency and accountability in the award of public contracts. - Mkini