LOCAL councillors in Pahang have been barred from participating in procurement and tender processes issued by their own councils, as part of a targeted governance reform aimed at eliminating conflicts of interest and curbing corruption risks in local administration.
The policy, approved by the Pahang State Executive Council on 14 May, follows an advisory by the Malaysian Anti-Corruption Commission (MACC) and reflects a broader national push to strengthen transparency in public procurement.
Under the new rules, councillors are still permitted to bid for tenders issued by other local authorities, provided they fall outside their area of appointment.
MACC Pahang Director Mohamad Shukor Mahmud welcomed the measure, describing it as “a highly positive and commendable step” toward safeguarding procurement integrity at the local government level.
He explained that the reform stems from a special advisory session held between MACC Pahang and the State Secretary’s Office on 7 August, where concerns over structural vulnerabilities in procurement procedures were raised.
“It is intended to strengthen integrity and efficiency in state administrative management. Key issues discussed included practices, systems and procedures involving council members in the tender selection process,” he said in a statement issued on Saturday.
Mohamad Shukor also confirmed that the advisory followed a 2022 probe by MACC into suspected abuse of power involving council members in Pekan. While no charges were brought, the investigation exposed procedural gaps that prompted calls for reform.
“Our findings showed room for improvement in tender management procedures. These changes are expected to bring meaningful progress in safeguarding governance standards and closing opportunities for corruption,” he said.
“This reflects the Pahang governments and MACC’s continued commitment to good governance and embedding a culture of integrity in public service.”
The move comes amid intensifying national attention on procurement abuses in Malaysia’s oil and gas sector, particularly concerning diesel supply contracts.
Speaking at the recent National Conference on Governance, Integrity and Anti-Corruption, Dr Shaziera Omar, Senior Lecturer at Universiti Teknologi Malaysia, highlighted how cartel-linked networks often dominate tender awards by manipulating systems from within.
“What we know is that the cartel is the one controlling the price. The oil and gas industry is extremely lucrative,” she said, urging a shift towards digital, tamper-proof procurement platforms already adopted in other countries.
She argued that modernising Malaysia’s procurement infrastructure would not only deter cartel activity but also level the playing field for smaller, ethical firms.
A recent investigative report by Sinar Harian exposed how a diesel supply cartel in Sarawak secured state-linked tenders over a decade by bribing insiders and offering artificially low prices. Supplies intended for public use were also allegedly diverted to offshore vessels, resulting in tens of millions in losses.
MACC Chief Commissioner Tan Sri Azam Baki was present at the anti-corruption forum, where these issues and proposed reforms were widely discussed. - September 20, 2025
