Watchdogs call for Act to keep govt procurement in check

The Star

21-07-2025

PETALING JAYA: A comprehensive Public Procurement Act with enforceable legal powers to address long-standing weaknesses in government procurement is urgently needed, say experts and watchdog groups.
Transparency International Malaysia (TI-M) president Raymon Ram (pic) said the Act must include transparency standards, independent oversight, legal sanctions for non-compliance, whistleblower protections and clear procurement dispute mechanisms.
'Simply consolidating current guidelines is inadequate; we need a law with teeth,' he said in a statement yesterday, following the release of the Auditor-General's Report 2/2025.
Raymon also called for swift enforcement by all relevant agencies, including the Malaysian Anti-Corruption Commission, police and others.
'All cases involving procurement fraud, abuse of power or negligence must be referred for investigation or prosecution.
'Any form of inaction sends the wrong signal to both the public and potential wrongdoers,' he said.
TI-M also urged all implicated ministries, departments and agencies to publish clear corrective measures, including recovery of funds, disciplinary steps and procedural reforms, to restore public confidence and show institutional responsibility.
Raymon also called for independent experts and third-party observers in all integrity pacts in high-risk procurements.
'The Auditor-General's Report must not be an annual ritual of regret,' he said, adding that 'it must serve as a catalyst for reform, one that rebuilds institutional integrity, ensures justice for wrongdoing and protects the interests of the rakyat.'
On the Pre-Qualification (Pre-Q) system of procurement that was trialed and implemented by multiple ministries, Centre to Combat Corruption and Cronyism (C4) chief executive officer Pushpan Murugiah said C4 agreed with the findings of the Auditor-General's office, since the system was found to be inefficient and open to abuse, an open tender system should have been used instead to eliminate or at least reduce corruption risks.
'Based on the Auditor-General's Report in this instance, the goal of efficient procurements through the implementation of the Pre-Q system was hampered by the lack of a maximum period for second-stage invitation, causing them to be unnecessarily prolonged,' he said.
The main issue that still needs to be addressed is that there is no legally binding baseline policy that sets the standard for all government procurements, he added.
'C4 Centre has long advocated for a Government Procurement Act that sets out minimum standards of adherence in terms of transparency, reporting and accountability at all stages of the procurement process, from advertising of tender until project implementation.
'We have seen that piecemeal reforms in specific areas of procurement does little to remedy the risks, and only shifts the flaws onto other aspects of the procurement process,' said Pushpan.
Malaysia Corruption Watch (MCW) president Jais Abdul Karim said Parliament and the Public Accounts Committee (PAC) should also summon the relevant parties for open public hearings.
'We need to accelerate the implementation of the eSelfAudit system, as announced by the Auditor-General, to prevent arbitrary approvals,' he said.
On the management of subsidised cooking oils, Federation of Malaysian Consumers Associations (Fomca) chief executive officer Saravanan Thambirajah proposed an IC-linked purchase system.
This, he said, would be similar to the approach used in the Sumbangan Asas Rahmah (Sara) programme.
'By linking purchases to consumers' IC, the authorities will be able to prevent repeat purchases beyond the permitted limit, and ensure that subsidies reach genuine domestic consumers rather than being diverted to the commercial sector,' he noted.
He said an improved digital tracking system was needed, allowing authorities to watch for abnormal purchase patterns or unusually high sales, in real time.
Saravanan said the issue represented a misuse of taxpayer funds and directly affected low and middle-income households who were the intended beneficiaries of the subsidies.
'While the intention of subsidising cooking oil is to shield vulnerable groups from the rising cost of living, it does not serve the purpose if leakages occur.
'In fact, they worsen the burden on low-income households by creating artificial shortages and driving up prices,' he said, stressing the need to reassess the sustainability of blanket subsidies.