MACC says no graft involved in overpriced binoculars’ purchase

UPDATED @ 01:33:21 PM 02-11-2011

By Lisa J. Ariffin

November 02, 2011

PUTRAJAYA, Nov 2 — The Malaysian Anti-Corruption Commission (MACC) today found there were no financial irregularities involved in the Marine Parks Department’s purchase of binoculars for more than 28 times the market price.

In his report last week, the Auditor-General had found that the Marine Parks Department paid RM56,350 for a pair of binoculars not worth more than RM1,940.

However, the MACC today said no corruption charges have been filed against the Marine Parks officer who approved the tender, as the price was manipulated by the company tasked with constructing the RM7.51 million “all-weather” aluminium boat required by the department.

“The contract was awarded to Kapal Masai Engineering Company Sdn Bhd, who had presented the lowest price to construct and build the “all-weather” boat. “This package included the price of ‘Bushnell Binoculars (Night Vision)’,” MACC deputy commissioner of operations Datuk Haji Mohd Shukri Abdull told reporters today here.

“Despite having an overall package at the lowest price, there were items in the package that were priced at unrealistic amounts,” he added.

Mohd Shukri said that although the Marine Parks officer involved was free from corruption charges, the latter had violated Treasury instructions for the procurement of government tenders, which states that market price research must be conducted before any approval is granted.

“The MACC would like to suggest that the Marine Parks Department takes action against the officer who failed to determine the current market price for this tender which resulted in a loss for the government,” he said, adding that the MACC would not be involved as there were no corruption charges.

“Furthermore, the department must ensure tenders are monitored to make certain each specification is stated so there is no chance for suppliers to manipulate the cost of items,” he added.

Mohd Shukri also said the government should blacklist the company involved.

“The company should be blacklisted as they manipulated the prices of supplied items which resulted in a big loss for the government,” he said.

“MACC takes seriously the weakness in the system and the tender procurement process and we have been consistent in investigating financial abuse.”