A-G wants training institute probed over 6 dubious suppliers

The six companies, the Auditor-General's Report revealed, were backed by the same financier.

KUALA LUMPUR: The Auditor-General (A-G) has called for a probe into the procurement of training equipment for the Manpower Department Training Institute (ILJTM).

This after irregularities were raised in the Auditor-General’s Report 2017 Series 1, namely the selection of suppliers, of whom were connected with one another.

The report said that the Companies Commission of Malaysia (SSM) had among others detected that the six companies had the same financier and were using the same company secretary.

“An audit on the documents submitted by the supplier companies found that the format for the delivery and invoice notes for the six companies were similar,” said the report referring to audits made between January and April 2017.

It said there was no proof to show that the human resources ministry (MOHR) had conducted a background assessment of the six companies with the SSM before proceeding with the procurement process as directed by the finance ministry (MoF).

Under the 11th Malaysia Plan, the government allocated RM37.1 million for the supply of equipment through contracts involving six supplier companies appointed through limited bidding, for the supply of 471 level three and five equipment at 27 training institutes.

ILJTM comprises the Japan-Malaysia Technical Institute, the Advance Technology Training Centres and the Industrial Training Institutes (ILP).

MOHR in its feedback said issues related to procurement should be referred directly to the Government Procurement Division, MoF, which is the original approving authority.

“In the auditors’ opinion an inquiry should be conducted on matters which have raised doubts to determine if the procurement process had been conducted in a transparent manner and in conformity with the principles of open competition and fairness,” the report said. -FMT