EXCLUSIVE | Former prime minister Najib Abdul Razak allegedly instructed the Education Ministry to directly appoint a company for a RM1.25 billion solar hybrid project meant to supply electricity to 369 rural schools in Sarawak.
This was revealed in documents sighted by Malaysiakini, which also showed that the contract tender bypassed the Education Ministry's standard operating procedures and procurement processes.
Sources close to the government told Malaysiakini that the Prime Minister's Office is now probing the RM1.25 billion solar hybrid project, which was awarded by the Education Ministry to a company linked to a local politician.
The company deals in car rentals, and is owned by a deputy division chief linked to the ruling party in Sarawak.
Malaysiakini understands that the PMO received the documents related to the case on June 1. The MACC and Education Ministry later initiated their own investigations into the matter.
On June 8th, Prime Minister Dr Mahathir Mohamad also alluded to the case in a press conference in Putrajaya.
"There is a company which was supposed to supply electricity to schools, and an allocation of more than RM1 billion was given to this particular company.
“This company did not do anything at all but they have been collecting money from the government.
"Nothing is done on the ground, not a single thing was put up. We will take action against organisations like this," Mahathir said.
When contacted by Malaysiakini, the Education Minister's spokesperson confirmed that they will be holding a press conference on the matter “very soon.”
‘Powering up schools’
The company from Sarawak was appointed by the Education Ministry in January 2017 to supply diesel, install solar hybrid systems and maintain generators for 369 rural schools in the state.
In documents dated January 5, 2017, Najib wrote a note instructing the ministry's former secretary-general to release an agreement letter and award the contract directly to the company.
On March 19 and April 22 that year, the former premier further instructed the secretary- general to approve the initial payment of RM130 million – almost 10 percent of the total RM1.25 billion project value.
Several months later, on July 19, 2017, former education minister Mahdzir Khalid also wrote to Najib to apply for an exception from the procurement procedure for the project.
Through his private secretary, Najib instructed the procurement secretary of the Finance Ministry to grant the exception.
On March 30 this year, a letter was then sent to the company by the Education Ministry's procurement and asset management department to demand an explanation on why no work had been carried out since the contract was awarded in 2017.
In the same letter, the ministry also reminded the company that the contract would end on December 31, 2019, and the contractor will have to make sure that all the solar hybrid systems are up and running accordingly.
Malaysiakini is trying to contact the director of the company for clarification.
Unauthorised changes to the contract
Another document sighted by Malaysiakini which revealed that the company altered parts of the original contract without the ministry's permission.
Malaysiakini understands that the company allegedly changed part of the terms during the bookbinding process of the contract.
The terms appear to have been changed to favour the company, such as adding the phrase “with additional costs borne by the government” to a certain part of the contract.
The sentence “this proposed monitoring system and equipment should be paid for by the government through additional costs and implemented by the contractor” was also added.
Yet another unauthorised addition states that “the maintenance is necessary to be further engaged the contractor services after the expiry of contract; the contractor shall have the right to maintain the same system provided that is being done under a service level agreement between the ministry and the contractor; and with monthly maintenance cost as agreed between the parties.”
In another document dated on April 5 and 6, a supplementary agreement was signed by the company to correct and amend all the clauses in the contract accordingly.
The minutes of the discussion on the supplementary agreement was signed by Mahdzir.
The contract discrepancies were discovered by an engineer from the Works Department, who reported the matter to the PMO's Public Complaints Bureau.
Malaysiakini understands that the initial investigation of the complaints is being conducted and that the MACC was also alerted.
Malaysiakini also met the engineer, who was allegedly pressured by senior officers not to reveal the matter to the authorities.
The engineer claimed to have been immediately transferred out from the Education Ministry.
Schools not receiving sufficient diesel supply
As part of the contract, the company was supposed to supply sufficient diesel and maintain the generators at the school.
However, the company was allegedly forging one of the headmasters’ signatures in the claims form.
In a police report lodged in April 2018, the headmaster claimed to have received a call from the Education Ministry to confirm the signature for the monthly generator operation claims for November 2017.
In the report, it was noted that the headmaster did not sign the confirmation of service in the claims form, and alleged that the signature was forged by the company.
For example, one of the schools in Kanowit had to ration the operation of the generators in school up to twice a day due to poor maintenance by the company.
Several other schools also faced similar situations, with disruptions of electricity supply from the ailing generators. -Mkini
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