KUALA LUMPUR – The government stands to save at least RM2 billion by re-evaluating flood mitigation projects that were approved by the previous administration, said Prime Minister Datuk Seri Anwar Ibrahim.
In tabling the mini-budget today, Anwar (Tambun-PH) said his administration is not denying the importance of these projects, but questions how they were approved hurriedly, especially via direct negotiations.
“This is why I have been adamant about stopping direct negotiations. We could save at least RM2 billion of the RM15 billion allocated. So when we checked, some projects were approved by companies belonging to sons, and their cronies.
“This is not an exaggeration, because I have done the due diligence.”
He said of 39 proposed flood mitigation projects that were submitted by the then Water and Environment Ministry, 28 were approved through direct negotiations with a value of nearly RM14 billion, or nearly 90% of the total allocation.
Previously, the ministry was allocated RM15 billion to conduct mitigation projects in the face of worsening floods nationwide.
“The question is why such projects, which cost the government huge sums of money, were done in a hurry and through direct negotiations despite the projects being expected to stretch until 2023.
“I would like to stress that the government is not questioning the importance of these projects, but why a huge amount of public funds is used easily and in a hurry.”
However, Anwar briefly explained that the government will approve allocations for projects of critical nature or in need of immediate government interventions, such as damaged infrastructure.
Datuk Seri Shahidan Kassim (Arau-PN) then interjected with parliamentary point of order 36(12), stating that Anwar was misleading Parliament with his speech.
Shahidan said he concurs with Anwar’s policy of putting a stop to direct negotiations, however, he questioned if this would be applied to government procurement in emergency situations, where red tape could impede efforts to resolve crises.
“I agree with you putting a stop to direct negotiations but you need to restructure the entire Financial Procedure Act, especially on matters pertaining to (government procurement) during crises. I’m worried that government agencies will be troubled by your statement.”
Anwar reiterated that the government will approve allocation during crises but stressed that all flood mitigation projects approved via direct negotiations, including in Kuala Lumpur, needed to stop.
An irked Shahidan, who is also the former federal territories minister, then said: “It is as if you are accusing me of something. I can also dig out dirt on you.”
Dewan Rakyat Speaker Datuk Johari Abdul managed to calm Shahidan down before Anwar proceeded with his speech.
The prime minister also clarified that he was not alluding to any allegations of corruption but was referring to putting a stop to the practice of direct negotiations in government procurement. – The Vibes, December 20, 2022
