THE Pakatan Harapan government practised open competitive tenders but did not completely rule out direct negotiations when awarding contracts, Deputy Finance Minister Amiruddin Hamzah said.

He said open tenders for government projects and contracts would be the general practice after the government did away with limited tenders.

PH pledged in its election manifesto to adopt an open competitive tender policy for federal and state project contracts.

“The general principle is open tender to ensure we get our money’s worth.

“But the government does not completely rule out direct negotiations. We are studying it,” Amiruddin told the Dewan Rakyat this evening.

He was addressing points raised by various MPs on the country’s debts and finances during the debate on the 11th Malaysia Plan mid-term review.

He said there are five criteria that could lead the government to consider holding direct negotiations for contract awards.

“We will negotiate directly if the need is desperate or if there is need for uniformity.

“Other criteria are sources of supply and services; security and strategic purposes like defence systems that you cannot make free for all; and contracts with Bumiputera companies like what is stated in the BK7-13 government circular.

“While we say we will generally go through open tenders, we may also do RFP (request for proposals). When we face pressing situations and when the need arises, we will also do this (direct negotiations).”

Amiruddin said RFP was a supplier sourcing method that could also be used in the open tender system when ministries or government agencies were not sure of the mechanisms involved in their projects.

“RFPs can be needed in certain cases. For consultancy service to do design and build, for instance,” he said.

Tajudin Abdul Rahman (BN-Pasir Salak) sarcastically asked Amiruddin how different was the new PH government’s practice from the Barisan Nasional government’s.

“Is this not the same as what the previous administration practised? It’s the same but we were bombarded as though we were wrong,” the Umno man said.

Amiruddin said during BN’s time, limited tenders were the “order of the day”.

“But here I guarantee that we will keep to our commitment to make sure every sen we spend is value for money.”

Dr Wee Ka Siong (BN-Ayer Hitam) also asked Amiruddin what mechanism the government would put in place to ensure the provision for direct negotiations was not abused.

Amiruddin said the PH administration would strictly obey the five criteria.

“The ministries and agencies may propose to do direct negotiations for their contracts, but in the end the Finance Ministry will have to give its approval.” – October 30, 2018.