GOVT REVIEWS 121 DEALS, SAVES RM806M

Projects offered by previous govt through direct negotiations, limited tenders renegotiated

THE Pakatan Harapan government has saved RM805.99 million after renegotiating 121 infrastructure projects. The projects, valued at RM13.93 billion, were offered through direct

negotiations and limited tenders by the previous Barisan Nasional government.

The projects exclude mega projects such as the Light Rail Transit 3 (RM31.65 billion) and Mass Rapid Transit 2 (RM39.35 bill io n), which were lowere d to RM16.63 billion and RM30.53 billion, respectively. The total costs saved from them amounted to RM23.84 billion.

The Finance Ministry said this followed the June 29, 2018 announcement on initial steps to improve the governance of government procurement and the country’s financial management, including reviewing projects offered through limited tenders and direct negotiations by the previous government.

“Based on the review, the government decided to undertake open tenders for limited tender and direct negotiation projects that have not yet been issued Letters of Acceptance (SST).

“In the meantime, for 121 limited tender and direct negotiation projects that have been issued SST, additional agreements will be finalised at the end of March 2019 after the prices were renegotiated as a rationalisation of the project costs, while reducing pressure on the government’s fiscal position,” the ministry said.

“Now, all the details will be dealt with by the respective ministries that handle the projects and will not involve the (Finance Ministry) anymore.

“Mindful of the current developments, the (Finance Ministry) is confident that the implementation of the government’s procurement through open tender in the near future will provide the best cost and value-added benefits to the government and the people.

“The old method of awarding contracts is maintained, but the only difference is that open tender is conducted to replace the direct negotiation or limited tender award practice, except for emergency factors, specific expertise needed or special reasons.

“For example, a contract offered to a Grade G1 contractor (formerly known as Class F Contractor) is still the same, except that it is only conducted in open competition among Grade G1 contractors and not as before, i.e. through direct negotiation or with the need to obtain a signature of consent from divisional heads of political parties.

“The (Finance Ministry) will always take a comprehensive initiative to ensure that government procurement abides by the principles of Efficiency, Accountability and Transparency.” Bernama