UNIVERSITI Kebangsaan Malaysia (UKM) failed to comply with procurement regulations in the awarding of three out of seven tenders worth a combined RM66.64 million, according to the Auditor-General’s Report Series 2/2025 tabled in Parliament today.
The report revealed that UKM’s Tender Procurement Committee had selected companies that were not recommended by the Technical Evaluation Committee, the Financial Evaluation Committee, or the Pre-Tender Committee.
“There were serious irregularities and weaknesses in the tender procurement process and governance at UKM. Decisions by the Tender Procurement Committee were made collectively by its members,” the report stated.
It also cited an example where the Pre-Tender Committee endorsed a company that had failed the evaluation stage in a contract for upgrading and replacing 16 elevator units.
The Auditor-General further noted that the Vice-Chancellor, as Chair of the Procurement Committee, is responsible for ensuring proper governance and compliance in the university’s operations, in line with Subsection 12(3) of the UKM Constitution and the duty of care principle.
The audit also found that UKM had failed to include a representative from the Ministry of Finance (MoF) on its procurement committee. Meanwhile, the representative from the Ministry of Higher Education (MoHE), though appointed, was absent from key meetings related to the three tenders in question.
Among the breaches identified was the selection of a supplier for a Linear Accelerator (LINAC) that did not meet compatibility specifications with the existing ARIA system, and the shortlisting of a food catering company that had failed the technical evaluation stage.
The report also flagged the awarding of a lift replacement contract to a company classified as a “sick project” contractor, bypassing the recommendations of all three evaluation committees. This decision, it said, led to the selection of a company incapable of delivering the contract within the stipulated timeline.
To address these failings, the National Audit Department has recommended that UKM revise its procurement guidelines to align with Treasury Circulars and ensure close monitoring of equipment delivery and lift replacement work at Hospital Canselor Tuanku Muhriz (HCTM) to ensure deadlines are met.
“In addition, disciplinary action is also recommended against the officers and committee members involved, subject to the findings of the MoHE’s Internal Investigation Committee,” the report stated.- July 21, 2025
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