The Public Accounts Committee (PAC) today put the spotlight on political influence in the awarding of contracts for the Johor-Singapore Vehicle Entry Permit (VEP) and Road Charges (RC) System Project due to direct negotiations.
The projects which fell under the Transport Ministry (MOT) during the BN-era were awarded to TC Sens Sdn Bhd, which was appointed by direct negotiations and not open tender.
They involved two separate contracts at a cost of RM149.45 million, said PAC chairperson Wong Kah Woh (above) in presenting the committee's report on the matter.
The PAC called on enforcement agencies including the MACC to pay attention to its conclusions and make appropriate investigations.
Wong said the PAC heard the testimony of Tanjung Piai MP Wee Jeck Seng, who is a former shareholder of TC Sens Sdn Bhd, former MOT secretary-general Mohd Khairul Adib Abd Rahman, former transport minister Liow Tiong Lai and chief secretary to the government Ismail Bakar, who held the post of MOT secretary-general between Nov 18, 2015, and Dec 15, 2018.
It also heard from TC Sens CEO Tan Chean Suan, whose company was award two separate contracts, namely Capital Expenditure Contract (CAPEX) amounting to RM 45.15 million and Operational Expenditure Contract (OPEX) amounting to RM104.30 million.
The committee found that there was no solid justification for allowing the projects to be awarded through direct negotiations, said Wong.
"MPs also need to declare business interests to the ministry in charge, if the business involves government projects.
"The selection of TC Sens Sdn Bhd which was submitted by then transport minister (Liow) to the then prime minister (Najib Abdul Razak) was done without a comprehensive evaluation with respect to the financial and technical capabilities of the company to implement the RC/VEP system project.
"The committee also found the existence of political influence in the appointment of contractors/vendors for RC/VEP system project through direct negotiations," he added.
The committee also reported finding weaknesses in the administration and implementation of contracts, namely a 16-month delay in signing the RC/VEP system project contract, the appointment of a third party in the implementation of the system RC/VEP without gaining approval from the ministry and the premature issuance of payment.
The RC/VEP system project was completed late, said Wong, highlighting that the role of the contactor as a vendor and not a competent solution provider had caused such delays.
Following this, the PAC called on agencies, including the MACC to investigate the matter and it recommended that in the future, the Finance Ministry should ensure all decisions to proceed with direct negotiations are supported by a strong justification.
It concluded that the government needs to ensure that there are no more exceptions given to any project which must go through the process of evaluation through the committee at the ministry level, including the Value Management Laboratory and an assessment by the ICT technical committee of the Malaysian Administrative Modernisation and Management Planning Unit (Mampu). - Mkini
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