MAKING changes to the contract awarding system as well as empowering graft busters to investigate unexplained wealth are among the proposals suggested by the Center to Combat Corruption and Cronyism (C4 Center) to overcome corruption in the government’s procurement system.

C4 said among the changes the government must make to the contract awarding system included publishing decisions and justifications on the awarding of contracts, and improving in-progress monitoring.

The government must also mandate asset declarations by public procurement officials.

In addition, C4 Center said the government must also amend the Malaysia Anti-Corruption Commission Act to give the commission more powers to open investigations into those with suspicious and unexplained wealth.

The watchdog said this in response to the MACC’s action against a “tender cartel” syndicate, which had monopolised government tenders amounting to RM3.8 billion for a number of years.

In capturing the people behind this cartel, the MACC seized RM3.5 million in cash from a “Datuk’s” home, luxury cars valued at RM15.7 million, a bungalow, shops and office lots worth more than RM29 million, and more than 600 bank accounts with RM100 million frozen.

C4 said that the exploitation of the system by the mastermind, who had created over 150 companies to create the illusion of multiple tenders, was not a new phenomenon, but one that was an open secret allowed to feed a system dominated by patronage and power.

It added that this was also made possible by the falsifying of personnel credentials and financial statements, which were given a blind eye by insiders who were in the pocket of the cartel and were able to provide the cartel’s companies with the information they needed, as well as ensure one of the companies was approved.

“The scale of the unexplained wealth and the magnitude of the thievery exposes many hidden hands, and how the awarding of tenders have now become an organised criminal activity.”

C4 also wanted the government to confirm the status of the independent ombudsman office to monitor projects and to have it serve as a public complaints channel to investigate real-time complaints and take punitive action where necessary.

At the same time, C4 said the powers of the Auditor-General must be added to check government contracts, without needing the consent of the Minister of Finance.

It also said civil society and independent professionals must be included in an oversight committee to review government tenders and projects.

“Ultimately, the fact remains that a system that allows for such a cartel to be formed is inherently rotten to the core.

“If Malaysia hopes to attain good governance goals and stamp out corruption within the system, this has to be addressed swiftly and firmly.” – April 8, 2021.