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Posted by : Admin Direktori Blog | Khamis, 10 November 2011 | Published in

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SERVANTHOOD


Irregularities in the award of contracts by Rural Development Ministry costing the people at least RM500,000,000.00‏

Posted: 10 Nov 2011 12:53 AM PST

Media Statement by YB Ngeh Koo Ham, Member of Parliament for Beruas in Parliament on the 10th Nov 2011:

Irregularities in the award of contracts in the Ministry of Rural Development, at least Five Hundred Million Ringgit (RM 500,000,000.00) could have been saved! MACC must conduct investigation immediately.

The Minister of Rural Development must explain the irregularities in the award of contracts in his ministry. There are reasons to suspect the existence of rampant corrupt practices. As much as RM 500,000,000.00 could have been saved had the Ministry followed the proper practice of awarding contract to the lowest qualified tenders.
I stayed up till 10.30pm in Parliament on Monday (8/11/2011) to debate and to wait for the answer from the Ministry of Rural Development with regard to the issues I had raised. I was greatly disappointed when the Deputy Minister of the Ministry refused to answer my questions.

The Rural Development Ministry is awarding 209 projects for the year 2011 and they are numbered KKLW 1/2011 – 209/2011. The Ministry has announced only the award of 129 projects. I have asked what has happened to the other 80 projects. The Deputy has refused to reply.
The projects under the ministry were given by direct negotiation, limited tender or open tender.

I have asked why projects like the Sarawak Rural Water Supply worth RM638,910,000.00 was given through direct negotiation. The Deputy has refused to give an answer. Other projects given through direct negotiation were the Sarawak Rural Water Supply recticulation system worth RM83,860,000.00 and the Sarawak Special Rural water Supply 2011/2012 project worth RM555,050,000.00

I have informed the Deputy Minister that I have received complaints that the companies that submitted the quotations for projects under limited tender category in many cases were in fact submitted by the same person using different names. The Ministry did not invite separate independent companies to bid for the job. The Deputy Minister also refused to answer whether the allegation is true. Projects No. 9–13, 23–40, 43-46, 51-56, 60, 69-75, 82-92, 100, 101, 110, 115 116, 118-124, 131, 132, 143 and 144/2011 (68 of them) were projects awarded through limited tenders.

Although open tenders were conducted for the 68 projects as listed in the schedule hereto, all were not given to the lowest priced bidder except for one. Many of them were awarded at many times more than the lowest price tendered.

The Government lost RM403,857,592.72 for its failure to give to the lowest qualified tenders. The proper way to conduct an open tender is to first determine those qualified to bid for the job. Once the qualifying criteria for the tender have been met, the contract must be awarded to the bidder who submits the lowest bid. Such a system will save the government money and be fair to all those who have make the effort to submit the tenders.
After taking into consideration, the loss the government suffered through direct negotiation and limited tender projects, I estimate the people lose at least Rm500,000,000.00 through the improper way the above said contracts were awarded.

I call on the government to award the balance projects that have yet to be given out to be done in accordance to the abovesaid accepted proper procedure of open tender system.
Unless a satisfactory answer is forth coming from the Minister, I call on the Malaysian Anti Corruption Commission (MACC) to immediately conduct investigation as the facts show prima facie that rampant corruption exists in the award of the above said contracts.

Ngeh Koo Ham

Schedule of 68 contracts awarded by open tender. Comparison of contract price awarded with that of the lowest bidder
No. Project No Lowest Bidder (RM) Awarded to Amount (RM) Difference (RM)
1 KKLWT1/2011 7,775,000.00 8th lowest 41,736,809.77 33,961,809.77
2 KKLWT2/2011 30,774,266.00 9th lowest 50,000,000.00 19,225,734.00
3 KKLWT3/2011 31,819,957.00 10th lowest 46,479,946.70 14,659,989.70
4 KKLWT4/2011 27,543,000.00 23rd lowest 55,864,389.65 28,321,389.65
5 KKLWT5/2011 12,461,000.00 6th lowest 45,212,680.00 32,751,680.00
6 KKLWT6/2011 9,519,000.00 14th lowest 53,303,701.79 43,784,701.79
7 KKLWT7/2011 25,175,862.90 3rd lowest 25,287,395.00 111,532.10
8 KKLWT8/2011 18,949,394.86 7th lowest 23,007,412.00 4,058,017.14
9 KKLWT14/2011 8,188,000.00 14th lowest 10,606,000.00 2,418,000.00
10 KKLWT16/2011 14,907,734.30 lowest 14,907,734.30 0.00
11 KKLWT17/2011 38,317,840.00 9th lowest 44,753,169.50 6,435,329.50
12 KKLWT19/2011 23,980,000.00 13th lowest 26,906,373.30 2,926,373.30
13 KKLWT21/2011 15,940,880.00 17th lowest 18,998,935.00 3,058,055.00
14 KKLWT22/2011 4,014,525.80 3rd lowest 4,940,029.50 925,503.70
15 KKLWT41/2011 7,903,269.00 8th lowest 10,255,000.00 2,351,731.00
16 KKLWT42/2011 12,658,519.10 17th lowest 17,066,668.00 4,408,148.90
17 KKLWT48/2011 33,200,000.00 11th lowest 44,950,336.22 11,750,336.22
18 KKLWT49/2011 19,564,411.00 10th lowest 24,791,993.20 5,227,582.20
19 KKLWT50/2011 13,632,609.50 10th lowest 16,005,736.00 2,373,126.50
20 KKLWT57/2011 4,453,561.00 4th lowest 4,695,656.00 242,095.00
21 KKLWT58/2011 3,999,000.00 6th lowest 4,280,332.00 281,332.00
22 KKLWT59/2011 1,695,423.00 7th lowest 1,778,590.00 83,167.00
23 KKLWT61/2011 3,964,450.00 6th lowest 4,382,653.00 418,203.00
24 KKLWT62/2011 2,630,000.00 6th lowest 2,920,285.00 290,285.00
25 KKLWT63/2011 5,060,000.00 12th lowest 6,188,888.00 1,128,888.00
26 KKLWT64/2011 5,043,124.00 9th lowest 7,185,650.00 2,142,526.00
27 KKLWT65/2011 5,699,000.00 10th lowest 8,050,500.00 2,351,500.00
28 KKLWT67/2011 37,189,000.00 26th lowest 81,475,281.42 44,286,281.42
29 KKLWT77/2011 21,336,333.40 9th lowest 24,896,997.98 3,560,664.58
30 KKLWT78/2011 19,000,000.00 9th lowest 22,176,223.00 3,176,223.00
31 KKLWT79/2011 21,280,142.40 9th lowest 24,297,795.30 3,017,652.90
32 KKLWT80/2011 18,221,634.00 14th lowest 35,500,000.00 17,278,366.00
33 KKLWT81/2011 20,503,925.50 10th lowest 26,640,000.00 6,136,074.50
34 KKLWT82/2011 6,045,771.00 12th lowest 11,912,202.00 5,866,431.00
35 KKLWT93/2011 741,033.20 4th lowest 1,526,400.00 785,366.80
36 KKLWT95/2011 1,391,941.00 11th lowest 1,782,367.00 390,426.00
37 KKLWT96/2011 1,657,385.00 12th lowest 15,076,251.43 13,418,866.43
38 KKLWT98/2011 7,763,788.00 8th lowest 10,422,536.00 2,658,748.00
39 KKLWT99/2011 12,500,774.00 18th lowest 20,791,446.18 8,290,672.18
40 KKLWT105/2011 8,660,014.25 7th lowest 11,369,684.00 2,709,669.75
41 KKLWT106/2011 3,000,000.00 6th lowest 3,778,933.00 778,933.00
42 KKLWT107/2011 1,100,900.00 9th lowest 1,480,000.00 379,100.00
43 KKLWT108/2011 12,348,370.00 5th lowest 16,537,921.90 4,189,551.90
44 KKLWT109/2011 15,160,246.70 2nd lowest 16,348,147.20 1,187,900.50
45 KKLWT114/2011 13,000,000.00 24th lowest 17,839,488.40 4,839,488.40
46 KKLWT125/2011 13,749,759.45 7th lowest 16,484,752.00 2,734,992.55
47 KKLWT126/2011 4,081,600.00 13th lowest 4,466,627.00 385,027.00
48 KKLWT130/2011 9,358,419.00 9th lowest 10,280,339.00 921,920.00
49 KKLWT134/2011 10,300,000.00 14th lowest 12,140,059.35 1,840,059.35
50 KKLWT135/2011 12,382,391.39 5th lowest 21,954,971.00 9,572,579.61
51 KKLWT138/2011 32,619,302.80 7th lowest 35,887,197.90 3,267,895.10
52 KKLWT139/2011 60,571,391.30 2nd lowest 64,444,000 3,872,608.70
53 KKLWT140/2011 8,361,900.10 lowest 8,361,900.10 0.00
54 KKLWT141/2011 5,570,000.00 5th lowest 5,976,000.00 406,000.00
55 KKLWT142/2011 23,089,683.00 10th lowest 27,468,000.00 4,378,317.00
56 KKLWT145/2011 9,008,104.00 12th lowest 10,237,377.00 1,229,273.00
57 KKLWT146/2011 43,444,000.00 3rd lowest 47,588,012.70 4,144,012.70
58 KKLWT148/2011 17,614,726.10 3rd lowest 18,888,000.00 1,273,273.90
59 KKLWT149/2011 25,587,256.50 12th lowest 27,977,000.00 2,389,743.50
60 KKLWT151/2011 11,818,121.42 5th lowest 13,862,680.00 2,044,558.58
61 KKLWT152/2011 9,144,200.00 7th lowest 9,730,267.00 586,067.00
62 KKLWT153/2011 10,389,789.00 2nd lowest 10,680,000.00 290,211.00
63 KKLWT154/2011 15,460,000.00 16th lowest 23,495,935.00 8,035,935.00
64 KKLWT157/2011 18,811,011.00 10th lowest 23,888,888.00 5,077,877.00
65 KKLWT163/2011 1,193,316.80 4th lowest 1,373,282.20 179,965.40
66 KKLWT178/2011 5,039,694.60 5th lowest 6,150,279.00 1,110,584.40
67 KKLWT179/2011 5,648,991.90 4th lowest 6,975,249.00 1,326,257.10
68 KKLWT183/2011 1,846,160.00 4th lowest 1,999,142.00 152,982.00
Total wastage: 403,857,592.72

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