Wednesday, April 30, 2008

Open Tenders

PERMATANG PAUH asked the prime minister to elaborate on the Government's commitment in implementing an open tender system as announced by the Prime Minister on achieving his 100 days in office as the Prime Minister; and the type and justification of projects which exceed RM10 million above which are still being negotiated through direct negotiation or close tender basis after surpassing the above days.

The Prime Minister responded by providing various reason why open tenders were not held and in many instances only local companies were qualified. I'll need to confirm the statistics again in the Hansard, when it gets updated, but he mentioned that 38% of Government projects above RM10m were concluded via direct negotiations. More details are probably needed as to whether this percentage is calculated by quantity or value of these projects.

The Prime Minister also gave the view that local companies need to be given protection and in certain instances, specific expertise was required, hence the "direct negotiations" approach.

I had my supplementary question prepared, but as expected, due to "seniority" didn't get my chance to ask (the only supplementary question allowed). My boss from BAGAN got the opportunity instead, and asked about the lack of open tenders and the impact on corruption.

Anyway, here was my supplementary question, had I had the opportunity:
Kenapa projek jambatan Pulau Pinang kedua diluluskan secara runding terus tanpa open tender walaupun saiz projek tersebut amat besar?

Dan yang lebih penting - kenapa projek tersebut diluluskan dan diberi kepada syarikat berkaitan SEBELUM harga kontrak dan hargan pembinaan ditetapkan dan ditentukan, yang menyebabkan kos jambatan kerap naik dari RM2.5b sehingga RM3.5b sehingga kini RM4.3b dan ada berita bahawa pihak kontraktor meminta sebanyak RM4.8b?
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