THE Selangor government’s decision to award a project to a company linked to a minister raises significant red flags for potential conflict of interest.

CSO Platform for Reform, an umbrella body for reformist groups, said this in a statement in response to the revelation that the state government has awarded a contract to Asia Mobility Technologies Sdn Bhd (Asia Mobiliti) to manage the Selangor demand responsive transit (DRT) project. 

Asia Mobiliti co-founder and CEO Ramachandran Muniandy is Youth and Sports Minister Hannah Yeoh’s husband.

“The question is whether this matter was declared at the onset during the process and was it made known to the state government’s procurement team?” the group said. 

“This situation is particularly concerning given the direct negotiation process used to award the contract, bypassing the open tender system which is designed to ensure transparency and fairness.” 

It added that direct negotiations between the government and Asia Mobiliti appeared to breach the reform promises of the unity government.

“This is also troubling given the public commitment and pledge by Prime Minister Anwar Ibrahim from the very start of his administration to halt direct negotiations for government procurements, which was intended to promote openness and competition in the awarding of contracts,” it said.

The group asked the Selangor government to disclose all details related to the contract award process.

It also wants the Malaysian Anti-Corruption Commission to launch an investigation into the deal.

Yesterday, Communications Minister Fahmi Fadzil said the contract for the DRT project has not been awarded to Asia Mobiliti. Instead the company has only been given a nine-month deal to prove its ability to deliver. The nine-month period ends in July.

“The prime minister has been informed about the Asia Mobiliti issue… and he also reminded the ministers that the licence held by the company was issued by the Land Public Transport Agency and that no contracts have been awarded yet.

“Like the prime minister said on Tuesday, if a report is filed with the authorities, an investigation will be conducted,” Fahmi said after a cabinet meeting.

On Tuesday, MACC chief Azam Baki said there was no need to investigate the case as no crime had been committed. – May 30, 2024.