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Posted by MP Pua digs up more dirt on government contracts on November 02, 2010 at 10:12:03:

MP Pua digs up more 'dirt' on government contracts

Christine Chan
Parliamentarian Tony Pua today revealed further cases of highly questionable government contracts published on the newly-launched MyProcurement portal.

He called on the authorities to investigate four contracts which were awarded by the Education Ministry, the Royal Malaysian Police and the Defence Ministry.

azlanPua (DAP-Petaling Jaya Utara) yesterday raised the issue of a RM77 million contract to build a hostel for 200 students at a school in Terengganu. It turned out that the figure as reported in the website was a mistake and has since been corrected to RM7.8 million.

However, a check on Rafa Sepakat Sdn Bhd - the company awarded the project - shows that it was the beneficiary of RM53.4 million worth of contracts in the last six months.

More so, the company was set up less than three years ago with the key owner not even 23 yrs old.
"The company was only established at the end of December 2007, and as at Dec 3, 2008 it had no revenue in its books," decried Pua.

He said the main shareholder and director of the company, Abdul Rahman Abdul Ghani, will turn 23 only this month.

Umno leader gets RM1.4 mil food contract
Pua also claimed that most of the contracts to supply food to 76 boarding schools in Pahang, awarded by the Education Ministry, were to individuals and not companies.

The contracts for cooked food reached a total of RM123.5 million, with the amounts ranging from RM420,000 to RM3.91 million each.

"I do not know that there's such a big difference in the size of our schools," he quipped at the large gap in contract prices and called for greater scrutiny.

He also highlighted that one of the contract recipients, Rafidah Halib, was a Wanita Umno leader in the Maran division. "She was awarded a RM1.4 million contract to supply food to SMK Maran," Pua said.

Pua also zeroed in on a RM82.8 million contract awarded by the Defence Ministry to clothing company KDI Garment Sdn Bhd for the supply of body-vest protection.

"A check with the Registrar of Companies showed that KDI Garment last filed their accounts in July 2006, with a revenue of RM1.75 million and a profit of only RM1,600.

"Should such a company be awarded a contract that is nearly 50 times its last known revenue?

Two other 'interesting contracts'
Additionally, Pua discovered two other "interesting" contracts awarded by the Royal Malaysian Police - one to purchase 'OKI printer ribbon and toner cartridges' for RM 25.4 million and the another, to buy 'ink and toner cartridges for Canon printers' for RM 12.9 million.

"That amount works out to approximately RM400 spent on each police officer for the use of printer ribbon and toner cartridges.
"But because there is no other information provided, we do not know how long the contract is for and the quantity (of ribbons and cartridges), " he added.

Pua blasted the portal for its lack of details regarding the contracts as this will help provide greater transparency.

"While there are no details of tender specifications, dates of tender and award, quantities, number of competitive bids and other relevant information, we have been able to detect various discrepancies and highlight potential 'rent-seeking' and 'patronage' deals," he said.

Pua, who is former economic spokesperson for DAP, had been scrutinising the portal since its launch last week and has over the past few days pointed out a number of discrepancies.
http://malaysiakini/ .com/news/ 128599

NOW YOU KNOW WHY BN WANTS TO IMPOSE GST, REDUCE SUGAR SUBSIDIES (SO THAT YOU AND I WILL BE HEALTHIER AS WE WILL CONSUME LESS SUGAR IF IT'S EXPENSIVE!) AND WHY THEY NEED TO INCREASE FUEL AND AMENITIES PRICES.

Now you know why we need good OPPOSITION, to check the BN Govt.
For 53 yrs, they took... and took everything. Yes, EVERY DAMN THING.

Stop the CORRUPTION - Nothing will change if you don't vote BN out