Jepak Holdings disappointed over termination of diesel contract

KUCHING: Jepak Holding Sdn Bhd has expressed its disappointment over a proposal by the Ministry of Education, Science and Technological Research to the Ministry of Education to terminate their (Jepak) contract to supply diesel to schools in Sarawak.

Its managing director Abang Saidi Abang Samsudin said the company initially tried unsuccessfully to approach Minister of Education, Science and Technological Research Dato Sri Michael Manyin to explain to him but was told ‘it is a high profile case’.

“The diesels were bought with cash, therefore, when our payment was delayed for almost eight months, it affected us, disrupting our effort to supply diesel, logistics ( particularly in rural areas) and maintenance work of generator sets at the schools.

“We hope Sarawak Education Ministry would reconsider thoroughly before recommending to the Federal Ministry of Education to terminate our contract,” he said in a press statement.

He said the company together with 12 of its diesel supplier subcontractors had met with Assistant Minister of Education and Technological Research Dr Annuar Rapaee regarding the matter on June 27, where they explained that they had consistently made the diesel delivery without any failure for the first 16 months despite some small ‘hiccups’.

He added they also explained to Dr Annuar that they started having problem on the diesel delivery to the schools in early June but was resolved after they were paid arrears by the Ministry of Education.

“For the record, our price of supplying diesel is 50 per cent lower than the previous contractors over the past 10 years. Jepak Holding Sdn Bhd charged the government only RM459 million for 3 years for everything, compared to the previous contract which was approximately RM780 million to RM800 million for three years excluding maintenance,” he said.

Manyin had on July 17 said that district education officers have been empowered to directly purchase diesel for their school’s generator sets.

According to Manyin, a directive was received on June 20 from the federal Education Ministry and Ministry of Finance which authorised the direct purchase of diesel up to RM20,000 per month with a ceiling of RM200,000 for 10 months for each school.

On June 17, Education Minister Dr Maszlee Malik said the Ministry will purchase and provide diesel for schools in Sarawak that use generators to generate electricity after the contractor, Jepak Holdings Sdn Bhd, failed to do so.

ItwasreportedthattheMalaysian Anti- Corruption Commission (MACC) was investigating alleged corruption involving the supply of diesel and solar power to 369 schools in Sarawak.