[UPDATED] Jana Wibawa worth keeping, but tweaks to prevent graft needed: analyst

KUALA LUMPUR – There are ways to improve implementation of the Jana Wibawa programme, an analyst has suggested, amid scrutiny into the scheme for Bumiputera contractors which has seen high-profile individuals charged in court for graft.

Assoc Prof Abu Sofian Yaacob said he agreed with the government’s move to continue the scheme, pending its current freeze for a review, but said improvements need to be made to prevent leakages and abuse of power.

For one, tenders awarded can be “rotated” among companies to prevent any monopoly by the same contractor.

“This rotation is to ensure that all companies benefit from the scheme, (and to prevent) control by one individual who owns different companies,” Abu Sofian, of Universiti Keusahawanan Koperasi Malaysia (UKKM) told Getaran, The Vibes’ Bahasa Malaysia sister portal.

He also suggested that the government look into getting contractors to form “consortiums” of different companies to complete different aspects of a project, so as to spread the benefits of the tender more widely.

Abu Sofian added that Jana Wibawa’s approach of awarding contracts through direct negotiation is only appropriate in the event of emergencies, like natural disasters.

“It (direct negotiations) can be the case during crises like floods, but one criteria must be that the company (getting the project) must be financially strong.

“However, if there is no emergency situation or special need, the government should not do direct negotiation projects. It must be done through an open tender,” he stressed.

Abu Sofian also said the scheme, though focused on smaller Bumiputera contractors, can also trickle down to businesses run by other ethnic groups such as equipment supply, or sand and cement supply. 

Jana Wibawa also has a role in “balancing profits” for small Bumiputera companies in the construction sector, which is dominated by larger companies and developers.

For these reasons, Abu Soffian said Jana Wibawa should be continued, pending the government’s probe into whether contracts were awarded in line with requirements set by the Treasury.

The scheme introduced during former prime minister Tan Sri Muhyiddin Yassin’s administration was aimed at increasing the capacity of Bumiputera contractors in the construction sector and to speed up project implementation during the Covid-19 pandemic, as well as to help post-pandemic economic recovery.

On February 15, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi announced the government’s decision to postpone RM5.7 billion worth of rural development projects under the Jana Wibawa scheme pending checks into whether they were awarded appropriately.

Deputy Finance Minister Datuk Seri Ahmad Maslan last week revealed that Jana Wibawa has, to date, used an estimated RM7.1 billion in public funds for 67 projects spanning various ministries.

To date, those charged with soliciting bribes in relation to Jana Wibawa include former prime minister and Bersatu chairman Muhyiddin, Tasek Gelugor MP Datuk Wan Saiful Wan Jan and Segambut Bersatu deputy division chief Adam Radlan Adam Muhammad.

Bersatu’s accounts have also been frozen by the Malaysian Anti-Corruption Commission.

The latest individual to be hauled up over Jana Wibawa is businessman Mohd Hussein Mohd Nasir, known as “Datuk Roy”, who allegedly solicited bribes amounting to RM400,000 to avoid investigations into the scheme. – The Vibes, March 16, 2023