Comprehensive reforms needed if govt continues with Pre-Q procurement method, says Deputy Finance Minister

The Star

5 days ago

KUALA LUMPUR: Comprehensive improvements to the government's selective pre-qualification procurement method (Pre-Q) is needed if it is to be continued in the future, says Lim Hui Ying.
The Deputy Finance Minister said the improvements are necessary following the Auditor-General' Report findings of weaknesses in the system including manipulation for bidding companies to be shortlisted.
"The Ministry takes note of the audit findings and recommendations.
"If the Pre-Q method is to be introduced again in the future, overall improvements are needed which has to be carefully looked at, particularly the aspects which could give rise to manipulation," she said when wrapping up her ministerial replies when debating the Auditor-General's Report in Dewan Rakyat on Wednesday (July 23).
She acknowledged that the report had found weaknesses in the Pre-Q method, which was introduced by the Finance under a pilot project in March 2023.
The aim of the Pre-Q method was to improve the open tender process to ensure that high impact project meant for the rakyat were implemented swiftly, she noted.
She said that the ministry had requested the Auditor-General's Department conduct an audit of the Pre-Q method on several ministries in August last year to determine its effectiveness, which was completed in April this year.
Among the weaknesses found during the audit, was at the two-stage evaluation process where companies were shortlisted for bidding for government projects.
"There was manipulation at this stage for companies to be shortlisted for the second stage of bidding," she said.
She said that the evaluation process need to be improved and made more transparent if the Pre-Q method is to be reintroduce in the future.
She noted that the Pre-Q pilot project had ended on Dec 31 last year.
The audit noted that the Energy Transition and Water Transformation Ministry and the Rural and Regional Develop­ment Ministry did not comply with the evaluation criteria stipulated by the Finance Ministry.
The audit found that six companies even passed the first stage without submitting required documents, with three of them later awarded Letters of Acceptance (LOA) for flood mitigation projects in Penang, Pahang and Selangor totalling over RM811mil under the Energy Transition and Water Transformation Ministry.
Furthermore, seven companies that did not have the financial capacity were invited to participate in the second round, up to four times under the Rural and Regional Development Ministry.
One of these companies was awarded the LOA for an RM40.1mil road upgrade works in Tumpat, Kelantan.
This was the first time that the Auditor-General's Report was tabled in Parliament for debates.