Six companies given one-sided contracts
THE Ministry of Infrastructure Development is in its final stages of re-evaluating previously awarded government contracts to outsource companies under the Sabah Water Department (JANS).
Its minister, Datuk Peter Anthony, said re-evaluation was necessary after it was found that contracts awarded to certain companies were done under unrealistic terms.
Contracts to six identified companies were awarded without capital, which was borne by the government, including costs for accommodation, electricity and other needs of personnel.
“These companies did not put up capital and all costs were borne by the government, which were paid in bulk at RM15.5 million per month, not including spare parts which were also charged to the government.
“From my experience, it is not possible for these contracts to be awarded. The contracts are onesided and put the government at a disadvantage,” he said during yesterday's question and answer session at the State Assembly sitting.
The identified companies operated in Sandakan, Tuaran, Beaufort, Sipitang, Papar, Beluran, Pitas, Ranau, Telupid, Kota Belud, Keningau and Tambunan, among other places.
Peter added that the contracts were for a period of 20 years with 13.5 years left, while a new contract was signed for another 20 years in 2017.
“If these contracts are supervised by JANS, we would be able to reduce the amount awarded to contractors, which amount to more than RM900 million or almost RM1 billion.
“We would also be able to absorb more workers to help us at 58 water plants because I believe they are interested to work for the government as it offers a permanent job.
“If the government decides to cancel these contracts, our plan is to replace not only existing pipes but also evaluate the pumps at water plants that are over 20 years old, which have not been replaced to date,” he said.
Peter further said JANS now received complaints 24 hours a day as opposed to only during office hours previously, so it would be able to attend to problems immediately.