Time to revamp the system


Emmanuel Joseph

EVERY other day, since Pakatan Harapan took over the government, more scandals are being uncovered. From land scandals to solar panel purchases and dubious appointments, the list grows longer by the day.

The chairman of the Council of Eminent Persons, Daim Zainuddin, said recently there are many “mini 1MDBs” that are being uncovered.

Exposing these cases are great, but perhaps more important is ensuring they are not repeated.

For this, parts of the system need to be re-looked, from the issuing of licences, to invitations to tender to appointments in certain positions. Parts of the system which facilitate largesse need to be revamped, liberated and, in some cases, eliminated.

For example, the process to register a company in order to bid for a government contract is tedious. Despite attempts to make it uniform by successive agencies like EPU and Pemudah, it remains considerably more complicated than your average private company.

After registering with the Companies Commission and obtaining your contractor classification, you will need to register under the Ministry of Finance to obtain the corresponding e-Perolehan heading under 23 different categories and hundreds of subheadings, some of which require special permission from various other agencies or proof of expertise.

If construction is involved, a CIDB licence is required as well, with headings of its own. Certain specialised jobs require specialised certificates, such as jobs involving power plants (Energy Commission) or pertaining safety (NIOSH).

If you have not given up or died of old age by then, you will still need to endure registering with the individual ministries or respective government-linked companies to bid for contracts.

This pushes up the barrier of entry for new players in the market. Although it does help ensure business for our local paper and file production industry, it also makes it difficult for other businesses, especially new ones, to participate in these tenders without seasoned, politically connected guides to help them navigate the paperwork nightmare.

This also provides plenty of avenues for corruption to take place, via the approval of certain licences, while promoting a rent-seeking culture where businesses which fail to obtain such licences participate using others’ licences for a fee, creating a cascading effect of “Ali Baba” from large to small contractors, and inflating costs in the process.

To increase competition and to cut down corruption, it needs to be simplified. Contractors who fulfil the criteria should be encouraged and guided, thus spreading the economic impact and lessening monopolies by certain parties.

Direct negotiations and sweetheart deals should be a thing of the past, to be told alongside Birkins and safe houses.

The appointments of board members and key positions should also be reconsidered. Previously, these positions were largely a reward system, as members of each party are allocated a certain number of these positions as a means of splitting the spoils of war.

The appointees often come under the auspices of a certain party or individual and as such, are largely seen as a proxy. These positions are also sometimes abused to seek political funds and contracts for friendly parties.

PH has a real opportunity to do away with these practices which stifle growth, eat into profits and interfere with business decisions.

Instead, appointing technocrats and professionals and veterans who sincerely want to serve the country, such as former senior management personnel and civil servants or experts and academics in their field, would inject much needed originality and creativity into our many boards and committees.

Politicians should also give these appointees trust and support to undo whatever damage has been done to them, and introduce a new culture into them, instead of replacing one political master with a new one. There needs to be political will to undo the will of former politicians in power. – June 13, 2018.

* Emmanuel Joseph firmly believes that Klang is the best place on Earth, and that motivated people can do far more good than any leader with motive.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.


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Comments


  • There is an easy solution to that and many developing and developed nations have digitized this process with a single portal that may be industry specific and applies to all categories and types of contracts.
    For that to work, the practice of open tenders needs to be enforced across all industries.

    Posted 7 years ago by MATHEW VERGHESE · Reply