Thursday, November 10, 2011

FMT - Open tender projects: ‘RM404m gone to waste’

KUALA LUMPUR: As much as RM404 million extra was “wasted” this year because the rural and regional development ministry refused to award 67 open tender projects to the lowest qualified bidders, DAP Perak chief Ngeh Koo Ham said.

Ngeh, the Beruas MP, claimed that of the 209 projects planned for the year, the ministry had awarded 129, of which only 68 were given via open tender.

Although open tenders were conducted for the 68 projects, he said they were not given to the lowest-priced bidder apart from one.

“There are reasons to suspect the existence of rampant corrupt practices,” said Ngeh, the DAP deputy secretary-general.

He cited one example of a project where the bidding could have been as low as RM7,775,000 but the ministry eventually awarded the tender for RM41,736,809.77.

He also claimed the Sarawak Rural Water Supply recticulation system worth RM83 million and the Sarawak Special Rural Water Supply 2011/2012 project worth RM555 million were awarded through direct negotiations.

Ngeh said he estimated that RM500 million of taxpayers’ money were lost through improper awarding of these projects.

He claimed that Deputy Rural and Regional Development Minister Joseph Entulu Belaun had refused to answer his questions on the allegations in Parliament on Monday.


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