PUTRAJAYA should reveal details of an “appointment agreement” by the previous caretaker government on a highway deal just before the 2022 general election, senior lawyer Mohamed Haniff Khatri Abdulla.

He said by doing so, the administration can reveal its exposure to the detail which was entered by the Perikatan Nasional-Barisan Nasional government.

The caretaker government’s deal was over a direct signing agreement involving RM3.46 billion with a YTL Holdings Bhd subsidiary for a concession for the multi-lane free-flow (MLFF) toll plaza project.

Haniff said the caretaker government’s role was to take care of the administration and not to commit to any agreements that could burden the incoming government.

“What was the nature of the agreement and was it binding or for future reference?

“What is the exposure to the country? Is the current government completely bound by the agreement?” he told The Malaysian Insight.

He also questioned the liability the government would have to bear if the project was cancelled.

“What happens if the current government cancels the agreement? Is it liable for any damages?

“They don’t have to divulge the whole agreement, but get the necessary ministry to explain it,” he said.

Haniff said under normal circumstances, a caretaker government was not supposed to enter into new government contracts, direct deals or policy agreements.

“They were the caretaker government during the election period, so how could they enter into any agreement?

“How could you enter into something (an agreement) that will bind the new government?

“A caretaker government’s job is to take care of the country’s affairs and not over-commit into agreements that could burden the incoming administration.”

It was earlier reported that the MLFF toll plaza deal by the caretaker government raised ethical questions as it had put pressure on the current government.

It was also reported that 32 highway toll concessionaires had protested to the direct tender as they were not consulted and the total cost was overpriced by 30%.

Works Minister Alexander Nanta Linggi meanwhile was reported as saying that the award for the project had yet to be finalised, and that the government only approved an “appointment agreement” on the MLFF concept on November 17 last year, after the cabinet evaluated the matter.

Renegotiate the deal

Meanwhile, Transparency International Malaysia president Muhammad Mohan said there are no laws or clear guidelines for a caretaker government to embark on major policies or committing the government to a mega project.

He, however, said that by convention, a caretaker government cannot take on major decisions such as awarding a job without tender to a company RM3.46 billion.

“The government should look at this agreement again and renegotiate to resolve this.

“This project should be tendered. To be fair to all parties, the YTL Holding subsidiary who is a party to the agreement should be invited to participate with other existing operators.

“The government must demonstrate that it is transparent and is walking the talk.”

Muhammad added that the project should be tendered because it is not a proprietary project where only a single source can offer this technology.

“Similar technologies have been implemented in Australia and Singapore so it should have been opened to existing operators to participate as well.

“There should be no excuse for not tendering,” he added. – December 20, 2023.