THE Centre to Combat Corruption and Cronyism (C4) is gravely concerned about the trend in tender and contract awards as reported in the news recently.

Support letter from agriculture minister to PM

Today, the Agriculture and Agro-based Industry Ministry said National Farmers’ Association (Nafas) operations had to be suspended from June last year to January this year for a special audit.

It was found that its board of directors had carried out 42 incidents of malpractice.

Minister Salahuddin Ayub wrote to Prime Minister Dr Mahathir Mohamad, recommending that a RM1.4 billion tender be given to Nafas and claiming that he did not know about the tender exercise carried out by the then secretary-general.

He perceived the action of writing a support letter as harmless, as the award letters have not yet been issued.

Economic affairs minister’s secretive dinner at his home

This was held on November 18, following Pakatan Harapan’s massive defeat in the Tanjung Piai by-election.

A group of MPs from Umno and PKR were at Mohamed Azmin Ali’s residence to:

a) Ensure Dr Mahathir still has good support from PH and the opposition; and,

b) Discuss government allocations for their constituencies.

Contradictions… yet again

On November 22, Dr Mahathir said ministers are allowed to give out contracts within their purview.

It bears reminding that in August last year, he said: “Ministers and deputy ministers can no longer issue letters of support for projects or any other applications.”

This is further etched in the National Anti-Corruption Plan (NACP) 2019-2023, launched by Dr Mahathir himself on January 29, which “prohibits members of the administration or any highly influential persons from issuing support letters for any projects or applications; as such, heads of departments are to deny such letters as directives or decisions”.

And so, what was Salahuddin thinking when he wrote the support letter? And to Nafas, who was being scrutinised and audited for not just one, but more than 40 cases of malpractice?

We remind Salahuddin why it’s wrong to issue support letters

It is an unfair practice to secure contracts of procurement, and which PH previously vehemently opposed being done by the previous administration.

It is a deviation from PH’s promise to not fall back on the old practice of directly awarding contracts, which enable corrupt practices.

And, it encourages the practice of favouritism within the government procurement system.

Open tender a requisite

PH has agreed to move towards the implementation of an open tender system in public procurement, as stated in NACP 2019-2023. It states that writing support letters to secure a contract:

a) Is not just erroneous, but also deplorable. It is a clear indication of the unchecked power of public officials to influence the selection process;

b) Resembles the negotiated tender practice. Open tender, on the other hand, promotes fairness and competitiveness;

c) Negates the open tender practice that seeks to ensure that checks and balances are in place to avoid unscrupulous activities in the selection process; and,

d) Undermines the transparency of the procurement process.

By opting for a fairer and more competitive procurement strategy, the government should also put in place a mechanism to prevent misuse of power, which could reduce its credibility.

Recommendations

C4 urges Salahuddin to explain why Nafas was backed by a support letter when the company had been on a special audit suspension since last year.

Ministers or any public officials’ role must not interfere with any part of the tender selection process, as otherwise, we would return to the direct tender practice of the previous administration.

C4 also urges Dr Mahathir to explain how it is alright for ministers to dish out contracts, when PH’s election manifesto promises transparency.

C4 seeks information on the progress of the promised public procurement law, announced by Finance Minister Lim Guan Eng in his budget speech last year.

We urge PH to return to its promises, and strive to make Malaysia a better place. – November 27, 2019.

* C4 is a non-profit organisation dedicated to fighting corruption, cronyism and related problems at all levels of government.

* 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.