KUALA LUMPUR – The multi-billion ringgit littoral combat ship (LCS) scandal should act as a wake-up call for Putrajaya to take more serious measures to reform public procurement, said the Institute for Democracy and Economic Affairs (Ideas).
In a statement today, its deputy research director Sri Murniati Yusuf said steps urgently needed to reform the country’s procurement system include introducing the Government Procurement Act (GPA) promised as part of the National Anti-Corruption Plan.
Sri Murniati said the government must stem the prevalence of operational mismanagement, uncontrolled project variations, the lack of timeliness of payment schedules, and general lack of enforced oversight in the nation’s procurement system.
“The current direct negotiation rules, as our policy paper suggests, have some weaknesses.
“The GPA, especially if it is modelled after the international procurement legislation such as the United Nations Commission on International Trade Law Model Law on Public Procurement, will provide better accountability mechanisms for direct negotiation and public procurement in general,” she said.
In addition, she said the GPA will also help improve transparency in defence procurement.
Sri Murniati noted that Malaysia’s Band D ranking in the 2020 Government Defence Integrity Index indicates a high risk of corruption in defence procurement.
Last Thursday, the Public Accounts Committee (PAC) recommended the Malaysian Anti-Corruption Commission (MACC) to take prosecutive action against those behind the scandal, with its chairman saying this was based on the findings made pertaining to the project.
MACC chief commissioner Tan Sri Azam Baki had said last Saturday that its probe is currently in the final stages, with investigation papers delivered to the Attorney-General’s Chambers, and that the results of the probe will be announced soon.
Najib had uploaded a number of posts on his Facebook account going on the defensive since accusations of misappropriation and alleged mishandling involving LCS were revealed by the PAC.
Findings revealed that the government has spent more than RM6 billion in the procurement of six LCS vessels, although none has been delivered yet.
Meanwhile, Ideas chief executive officer Tricia Yeoh called on the government to implement the PAC’s recommendations in continuing the procurement under the LCS project.
Among the seven-step recommendations by the PAC include for MACC to take action on the findings from the PAC’s report, forensic audit report, and the Special Committee on Governance Investigation, Government Procurement and Finance (JKSTUPKK) report as well as for the Defence Ministry to submit progress reports to the PAC every three months until the project is completed.
“The government now has to implement these recommendations swiftly if they respect and take the institution of Parliament seriously.
“Instead of more commissions of inquiry and more investigative committees, action can already be taken urgently based on the PAC report by law enforcement agencies, such as the MACC.
“Malaysians want to see those responsible for wastage and corruption of public money be made accountable,” Yeoh said.
Implementing the recommendations, she said, shows that the government takes this matter seriously.
“Among the recommendations, we emphasise that JKSTUPKK’s report must be declassified.
“We also urge the government to update the public on the implementation of these recommendations and call for the PAC to examine all the JKSTUPKK reports.” – The Vibes, August 10, 2022
