THE Education Ministry failed to follow procedures in granting a letter of award to Jepak Holdings Sdn Bhd for a solar project in Sarawak worth RM1.25 billion, a witness told the Kuala Lumpur High Court today.

Former education ministry secretary-general Alias Ahmad, while under cross-examination by defence counsel Akberdin Abdul Kader, agreed that the ministry had failed to conduct value management on the project.

He also agreed that the ministry did not have a technical committee look into the project before the letter was issued.

Alias, the 12th prosecution witness, was also the controlling officer at the ministry at the time.

Akberdin: So you issued the LoA?

Alias: I didn’t issue the LoA

Akberdin: Who was the controlling officer? You. So you’re telling me that you didn’t know about the LoA, which was issued on November 10, 2016?

Alias: Yes. I didn’t know.

Akberdin: Don’t lie to the court. Yesterday, Kamarudin Abdullah (former asset acquisition and management department secretary at the Education Ministry) said you had meticulously checked the LoA.

Alias: There is no document to prove that. My signature is not on the LoA.

After a few rounds of this, Akberdin said that according to a Finance Ministry circular, the controlling officer was the person who prepared the LoAs.

Alias agreed that was the case but that the LoA for Jepak was an exception.

He said the system allowed him to delegate his duties to his subordinates as he couldn’t do everything.

“If my subordinates don’t come to me, I wouldn’t know what has happened,” Alias told the court.

Akberdin suggested that there were elements of negligence in the award of the solar project and Alias agreed.

The defence lawyer said value management should have been done and that a price negotiation committee should have been formed before the LoA was issued.

Akberdin: It is the ministry’s responsibility to do value management for projects costing above RM50 million and to form a price negotiation committee before the LoA is issued. Regrettably, in this case, this was not done. Correct?

Alias: Correct.

Akberdin: So there was a blatant non-adherence to procedure and the Finance Ministry had criticised the Education Ministry for its failure to do these things. Correct?

Alias: Yes. Correct.

Akberdin said setting up the technical and price negotiation committees and conducting value management after the LoA had been issued to Jepak were “futile exercises”
 
Alias agreed but said his deputy had advised him to set up committees to oversee the project. – March 11, 2020.

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