THE Jana Ekonomi Pemerkasaan Kontraktor Bumipetera Berwibawa programme, or better known as Jana Wibawa, is a scheme introduced by the Muhyiddin Yassin administration to speed up project implementation and boost the country’s economy during and after the Covid-19 pandemic.

The scheme was also intended to increase the capacity of Bumiputera/Malay contractors in the construction industry to help them become more competitive and resilient.

Recently, however, the Malaysian Malay Contractors Association (PKMM) revealed that the awarding of Jana Wibawa projects through direct negotiations and the tenders selected was an “open secret” known to Malay and Bumiputera contractors.

PKMM president Mohamed Fadzill Hassan claimed that the projects were given to companies that were friendly with certain parties even though they had no experience and expertise to do the job.

He wanted the Finance Ministry to disclose detailed information about those who had been given projects through the Jana Wibawa scheme.

“We are not jealous of those who got the Jana Wibawa project, but the awarding of the project needs to be fair in terms of selection based on their ability, experience and professionalism. Not (just) anyone who is good with the prime minister or the minister who awarded the project,” Fadzill had said.

Minister in the Prime Minister’s Department (Law and Institutional Reform) Azalina Othman Said said several lists of Letters of Acceptance (LOA) issued through projects under the Jana Wibawa scheme involved the family members of key leaders in certain political parties.

She said the Malaysian Anti-Corruption Commission (MACC) had not been able to identify the true value of the projects thus far.

Azalina, in a written parliamentary reply yesterday, said a total of 56 projects received LOAs and the total value of all the projects was RM6.3 billion.

The MACC recently launched investigations in the wake of allegations that contractors selected under the programme had deposited a total of RM300 million into Bersatu’s bank account.

The anti-graft agency has frozen Bersatu’s account to facilitate its probe. The MACC also summoned Muhyiddin last week to record his statement on Jana Wibawa.

International Trade and Industry Minister Tengku Zafrul Abdul Aziz, who served as finance minister during the Muhyiddin administration, was also called up by the anti-graft agency over the matter.

Earlier today, Bersatu information chief Wan Saiful Wan Jan claimed trial to the charge of accepting almost RM7 million in kickbacks in connection with the Jana Wibawa aid programme.  

The Tasek Gelugor MP was also charged with soliciting for RM232 million in bribes in relation to the same programme to help highly placed Bumiputera contractors affected by the pandemic.

In a separate court, Segambut Bersatu division deputy chief Adam Radlan Adam Muhammad also claimed trial to charges of corruption.  

The 42-year-old was accused of asking for a bribe of up to 7% of the value of a RM47.8 million road construction project in Perlis, from one Mat Jusoh Mamat, who is the director of MIE Infrastructure & Energy Sdn Bhd.

Last week, Putrajaya announced that the RM5.7 billion worth of rural development project under the Jana Wibawa scheme had been set aside for review to determine whether contracts had been awarded in accordance with the procurement processes and governance requirements set by the Treasury.

How Jana Wibawa started

Jana Wibawa was created during the Covid-19 pandemic, a continuation of the Competent Bumiputera Construction Contractor Development Programme that had begun in 1993.

This was a special programme for the development of Bumiputera contractors, of which the members of the companies’ board of directors and shareholders are 100% Bumiputera.

Its implementation was approved by the cabinet on November 13, 2020, with the aim of speeding up the execution of government projects as well as increasing the capacity of Bumiputera contractors in the construction industry.

It is also part of an effort to achieve the goal of strengthening the Bumiputera Economic Community (BEC).

In order to identify companies that are eligible to participate in this programme, the evaluation is carried out in two phases: The first phase at the Finance Ministry (MOF) level and the next at the level of the implementing agency.  

Phase 1: The committee at the MOF level will ensure that all criteria are met by Bumiputera contractor candidates. These include G7 grade contractors with a CIDB Score rating of at least three stars, have a good track record and are technically and financially capable. They also cannot subcontract projects to anyone.

Phase 2: Eligible contractors who have been shortlisted will be notified to implementing agencies (such as Public Works Department, Rural Development Ministry and Irrigation and Drainage Department) for the purpose of inviting them to submit project bids. These companies will compete to submit the best offer that will be considered by the Government Procurement Approving Authority. If found to be eligible, the company will be appointed by the implementing agency. – February 21, 2023.