MOT defends decision to buy 10 trains through direct negotiation

 

The Transport Ministry (MOT) said its decision to buy 10 six-car electric trains by negotiating directly with the vendor was above board.

In a statement today, the ministry said an open tender was called on Jan 23, and three bids were submitted.

However, the tender board had decided on June 23, 2020, that none qualified.

In view of this, MOT said the government proceeded to engage a vendor - which the ministry did not specify - directly.

"Calling for a fresh tender would have taken time, and it was difficult in seeking a company which is registered as a train manufacturer," it said.

MOT said that the Finance Ministry was the ultimate authority in approving the deal according to procurement guideline PK7.15, which outlined procurements through direct negotiation.

According to the results of the Jan 23, 2020, open tender process, three bids submitted amounted to RM615.3 million, RM533.4 million and RM456 million, respectively.

As with government protocol, none of the bidders were named when the receipt of bids was recorded.

Incidentally, the directly negotiated contract value was RM456 million - the same as the lowest bid recorded.

MOT did not name the company that was awarded the contract. Malaysiakini is attempting to seek further clarification from the ministry.

Its statement today was a response to an article posted on the Sabahkini2 website, which made several allegations against MOT director-general Isham Ishak. - Mkini

Editor's note: Sabahkini2 is not affiliated with Malaysiakini in any manner.