The MACC has opened a probe on a vehicle entry permit (VEP) deal which focuses on Tanjong Piai MP Wee Jeck Seng's involvement in the company that won the contract.
According to a report on the follow-up action taken by government ministries to the Public Accounts Committee (PAC) report on the VEP, the MACC told the parliamentary committee that investigations were conducted under Section 168 of the Penal Code.
Section 168 reads: "Whoever, being a public servant, and being legally bound as such public servant not to engage in trade, engages in trade, shall be punished with imprisonment for a term which may extend to one year or with a fine or with both."
According to the MACC, an investigation paper was opened sometime this year focusing on Wee (above) who was formerly a shareholder of the company awarded the contract - TC Sens Sdn Bhd.
The MACC told the PAC, which examines government projects and programmes, that the matter was still under investigation.
In 2015, TC Sens was awarded the project to collect RM20 for each vehicle entering Johor through the land border.
At the time, the transport minister was Liow Tiong Lai. Liow was also then MCA president while Wee was a party member. Wee was a government backbencher when the contract was given.
Wee was Tanjong Piai MP from 2004 to 2018. He lost the seat at the 2018 general election but won it back in a by-election a year later.
Minister unaware of connection
According to the transcripts of the PAC hearing on March 27, 2019, Liow said he was unaware that Wee had a 25 percent stake in TC Sens when the project was awarded.
Liow also told the PAC that the contract was not awarded by him alone as the matter was vetted by his ministry's technical committee and the Finance Ministry.
Wee told the PAC on Sept 3, 2019, that he was merely a sleeping partner in TC Sens and he invested RM25,000 in the company. He added that he eventually surrendered the RM25,000 stake and never benefited when TC Sens won the VEP contract.
TC Sens principal owner Kenneth Tan or Tan Chean Suan testified before the PAC on Oct 23, 2019, and explained that his company responded to a request for proposal (RFP) on the RC/VEP project sometime between 2013 and 2014.
The PAC's initial report last year had remarked that any direct award of government contracts, as opposed to conducting an open tender, must have strong justification and the MACC must take note of such deals.
According to the Finance Ministry's reply to this, the cabinet had decided on March 27, 2015, to award the VEP project through open tender.
However, on June 24, 2015, transport minister Liow sought then prime minister Najib Abdul Razak's permission to award the contract directly.
At the time, Najib was also the finance minister. Liow was granted permission by the Finance Ministry to go ahead without an open tender.
On PAC's recommendation that all MPs must declare their business interest, the Finance Ministry said it was studying "initiative 3.2.11" of the National Anti-corruption Plan 2019 (NACP) to compel companies seeking government contracts to declare all their beneficial owners. - Mkini
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