KUALA LUMPUR – The Public Accounts Committee (PAC) has flagged political influence in two directly awarded contracts under the Transport Ministry then led by Datuk Seri Liow Tiong Lai.
The projects are the Johor-Singapore Vehicle Entry Permit (VEP) and Road Charges (RC) system that were directly awarded to TC Sens Sdn Bhd for RM149.45 million, said PAC chairman Wong Kah Woh when presenting the committee’s report on the matter.
He said PAC heard testimonies from Tg Piai MP Datuk Seri Wee Jeck Seng, a former shareholder of TC Sens; former ministry secretary-general Datuk Mohd Khairul Adib Abd Rahman; Liow; and, former chief secretary to the government Tan Sri Ismail Bakar, who held the post of ministry secretary-general between November 18, 2015 and December 15, 2018.
The committee also heard from TC Sens chief executive Tan Chean Suan, whose company was awarded two separate contracts, namely capital expenditure (capex) amounting to RM45.15 million and operational expenditure (opex) amounting to RM104.3 million.
Wong said PAC found no proper justification for the projects to be awarded via direct tender.
“MPs also need to declare business interests to the ministry in charge, if the business involves government projects.
“The selection of TC Sens Sdn Bhd, which was submitted by the then transport minister (Liow) to the then prime minister (Datuk Seri Najib Razak), was done without a comprehensive evaluation with respect to the financial and technical capabilities of the company to implement the RC/VEP system projects.”
The committee found “the existence of political influence in the appointment of contractors/vendors for the RC/VEP system projects through direct negotiations”, added Wong.
Other problems include weaknesses in the administration and implementation of the contracts, such as a 16-month delay in signing the RC/VEP system deal, the appointment of a third party in the implementation of the system without gaining approval from the ministry, and the early issuance of payment.
Wong said the RC/VEP system was completed late, adding that the role of the contractor as a vendor, and not a competent solution provider, caused the delay.
PAC has pushed for various enforcement agencies, including the Malaysian Anti-Corruption Commission, to investigate the matter, and recommended that the Finance Ministry ensure that all direct negotiations are backed by strong justification. – The Vibes, November 10, 2020
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