All tenders for govt projects subject to MoF panel review

PUTRJAYA: All tenders related to government projects are still subject to review by the Ministry of Finance’s (MoF) Procurement Committee before being awarded, said Treasury Secretary-General, Tan Sri Mohd Irwan Serigar Abdullah.

He said this was irrespective of whether the contracts involved open tenders, direct negotiation or limited tenders, and regardless of which minister or the Prime Minister signing off on the approval for the project.

“It will be the committee’s decision. We will evaluate the tender as to the cost and if the company is qualified, as well as the technical viability.

“So, even there is a letter with the Prime Minister’s signature or minister’s directive, it still goes to the committee and we will follow the standard operating procedure,” he said during a question-and-answer session with the media on the Auditor-General’s Report 2016 First Series yesterday.

Mohd Irwan was asked if the government intended to limit direct tenders after the report highlighted several delayed projects such as the Bera Hospital in Pahang.

The report, tabled in Parliament on Monday, urged the Public Works Department to appoint a reliable new contractor to complete the construction of Package 2 of the Bera Hospital and the urgent appointment made to ensure the existing structure of the building did not suffer from material deterioration.

Replying to a question, Mohd Irwan said: “We will go for direct negotiations to save time, cost and enhance efficiency. But, direct negotiations have been decreasing in percentage. We are now going more for open tenders.

“Last year, 59.57% of government contracts were awarded via open tender and only 39% were through direct negotiation. The balance 1.2% was awarded through limited tenders.”

Asked why government revenue fell from RM219 billion to RM212 billion, he said it was due to the sudden decline in oil prices in 2014, 2015 and 2016, and the government was still dependent on oil revenue then.

“When the government introduced the Good and Services Tax (GST) in 2015, we succeeded in collecting RM42.6 billion. While many criticised the GST, if not for it, the country could have gone bankrupt.

“If anyone says the GST can be abolished, then the country will be in a lot of trouble. The fall in revenue was due to oil, but we believe in diversifying the economy.

“In 2014, we were dependent on oil, at almost 41% of government revenue. But, when we implemented the GST and undertook a lot of rationalisation, the dependence on oil dropped to just 14% at present. That is the government’s success,” Mohd Irwan added. – Bernama