Latest news with #LOA
The Star
17 hours ago
- Business
- The Star
Ireka to engage legal counsel on termination of Pan-Borneo Sabah highway sub-contract
KUALA LUMPUR: Ireka Corporation Bhd (Ireka) said it is in the process of engaging legal counsel in response to the proposed mutual termination notice from Gammerlite Sdn Bhd (GSB) relating to a sub-contract for a portion of the Pan Borneo Sabah highway project. The notice was received today from GSB, proposing a mutual termination of the letter of award (LOA) dated Oct 8, 2024 and Oct 11, 2024, where GSB had appointed Ireka's wholly-owned subsidiary, Shoraka Construction Sdn Bhd (SCSB), for road upgrade works from Kampung Lomou Baru to Kampung Toupus. The proposal followed the termination of the Project Operation Agreement (POA) between MTD Construction Sdn Bhd (the main contractor) and GSB, which was terminated on June 30, 2025, due to GSB's failure to secure the required funding by the deadline set out in the POA. Ireka said it has formally communicated its disagreement to GSB, but to date, it has not received a response. "ICB does not agree to the proposed mutual termination in its current form, as certain scopes of work under the project have already been partially completed by SCSB; and the mutual termination notice does not address settlement terms for the value of work completed or related obligations,' it said in a stock exchange filing. In addition, it said in any event, Ireka said it "hereby reserves all its rights, interests, and remedies under the LOA and applicable laws against GSB, including but not limited to recovery for work performed and related costs.' "The financial impact to the group remains indeterminate at this stage, pending the conclusion of settlement discussions. "The project's contract sum was RM1.07 billion, of which approximately RM10 million has been recognised, with RM1 million in profit based on approximately one per cent physical progress,' it added. Ireka is seeking equitable settlement for work performed and costs incurred, and anticipates legal and administrative expenses in connection with the dispute resolution. - Bernama
The Star
6 days ago
- Business
- The Star
Comprehensive reforms needed if govt continues with Pre-Q procurement method, says Deputy Finance Minister
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.
The Star
21-07-2025
- Business
- The Star
A-G: Go back to open tender system
PETALING JAYA: The Auditor-General has flagged the government's selective pre-qualification procurement method (Pre-Q) after companies that did not fit the bill and failed to comply with the process still qualified to the next round of the tender process. The Auditor-General has also recommended the Pre-Qualified Selective Procurement method be discontinued and for the government to revert to the open tender system. The audit findings involved projects from three ministries: Energy Transition and Water Transformation (Petra), Works, and the Rural and Regional Development. According to the Auditor-General Report Series 2/2025, the Pre-Q Procurement mechanism was introduced by the Finance Ministry for project tenders for 2023 and 2024. As for the process, companies that pass the first-stage screening process will be invited to proceed with the open tender process at the second stage. This method is intended to ensure that selected companies are competitive and capable. The audit found potential for manipulation and a lack of transparency in the selection process. Some companies that didn't meet the first-stage evaluation criteria, or weren't even invited, were still selected and evaluated in the second stage. Additionally, the procurement process often exceeded its stipulated duration. For Petra, 154 companies were invited to bid for 25 projects. 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. For the Rural and Regional Development Ministry, no list of projects was provided during the first stage of invitation. 'A total of 721 companies participated in the invitation, and 485 companies (67.3%) were approved and certified by the ministry's Procurement Board between Aug 7 and Oct 20, 2023, for the first stage invitation,' the A-G report said. The audit found that seven companies that did not have the financial capacity were invited to participate in the second round, up to four times. One of these companies was awarded the LOA for a RM40.1mil road upgrade works in Tumpat, Kelantan. The Works Ministry, however, showed full compliance in its first-stage evaluation. Both the ministry and the Sabah Public Works Department (JKR) adhered to the Finance Ministry's directives, with 113 companies meeting criteria and passing the first stage. The audit noted that the Petra and the Rural and Regional Development ministries did not comply with the evaluation criteria stipulated by the Finance Ministry. 'Furthermore, this also indicates a lack of transparency and errors in the evaluation of companies at the first stage, which subsequently led to ineligible companies being awarded LOA,' it said. In its response, Petra said the list of companies for participation in the Pre-Qualification stage was obtained through the Construction Industry Development Board's (CIDB) Construction Industry Management System (CIMS), based on pre-determined criteria and records of companies that had participated in similar Open Pre-Qualification Tenders. The Works Ministry, meanwhile, said the Sabah JKR did not have an up-to-date database for the procurement for the 15 work packages under the Pan Borneo Highway Sabah Phase 1B Project. 'The existing database pertained to the Pre-Qualification Tender for the Pan Borneo Highway Sabah Phase 1A Project, which was compiled in 2021. 'However, the data was no longer relevant as the current Pre-Qualification Tender was open to companies from Sabah, Sarawak and Peninsular Malaysia,' said the Works Ministry. As a proactive measure for future implementation of fast-tracked mega projects, the Works Ministry plans to use the CIDB database as a reference and for checks and balances to ensure the accuracy and currency of company information and to uphold data integrity, the ministry added. The Rural and Regional Ministry admitted the absence of a complete register of contractors whose previous bids were approved by the Finance Ministry, which would be used as a basis for invitation. The ministry couldn't determine the validity of the information in the registry. The Finance Ministry, on the other hand, stated its commitment to improving the tender process by coming up with a tender guideline for ministries, ensuring that the Electronic Government Procurement Application is used to increase efficiency and a clearer framework for decision-making in the award of projects. The A-G recommended strategic preliminary screening, proper specification of project types (specific and not complex), clear and transparent Pre-Qualification criteria with maximum timeframes, and the formation of an integrated company database.
Mint
21-07-2025
- Business
- Mint
Titagarh Rail share price jumps 2% on ₹312 crore order from Indian Railways
Titagarh Rail Systems' share price jumped 2% in the intraday session on Monday, 21 July 2025, after the company secured a ₹ 312.69 crore contract from the Ministry of Railways. The Railway Ministry has ordered the company to manufacture 780 BVCM-C category wagons, and the contract is valued at ₹ 312.69 crore. 'We wish to inform you that the company has secured a Letter of Advance Acceptance (LOA) from Ministry of Railways, for 'Manufacture and Supply of 780 BVCM-C Wagons'. The order value is about ₹ 312.69 crore,' the company informed the BSE through the filing. The company also disclosed that the order is expected to be fulfilled within nine months from the date the contract was placed. Titagarh Rail Systems shares closed 1.30% higher at ₹ 937.85 after jumping nearly 2% during Monday's stock market intraday session, compared to ₹ 925.80 at the previous market close. The company announced the order book update during the market session on 21 July 2025. The shares hit their intraday high of ₹ 943.50 after the company's order book update, before closing marginally lower from that level on Monday. Titagarh Rail shares have given stock market investors nearly 100% returns on their investment in the last five years. However, the stock is down 42.14% in the last one-year period. On a year-to-date basis, the shares have lost 15.27% in 2025, but are trading 7.2% higher in the last one-month period. According to BSE data, the railway wagon maker's shares hit their 52-week high at ₹ 1,707.30 on 29 July 2024 and their 52-week low at ₹ 655.30 on 4 March 2025. The company's market capitalisation (M-Cap) was ₹ 12,630.38 crore as of the stock market close on Monday, 21 July 2025. Read all stories by Anubhav Mukherjee
The Star
21-07-2025
- Business
- The Star
A-G calls for overhaul of govt's Pre-Qualification procurement process
PETALING JAYA: The Auditor-General has flagged concerns over the government's selective Pre-Qualification (Pre-Q) procurement method, citing instances where companies that did not meet criteria advanced in the tender process. The Auditor-General has recommended scrapping the Pre-Q method in favour of reverting to the open tender system. The audit findings involved projects from three ministries: Energy Transition and Water Transformation (Petra), Works, and Rural and Regional Development. According to the Auditor-General's report Series 2/2025, the Pre-Q mechanism was introduced by the Finance Ministry for project tenders in 2023 and 2024. Under the Pre-Q process, companies that pass the initial screening are invited to participate in the open tender process at the second stage. This method aims to ensure participating companies are competitive and capable. "Based on audit findings, there is potential for manipulation and a lack of transparency in the selection process. Some companies that did not meet evaluation criteria in the first stage were still selected and evaluated in the second stage. "Additionally, the procurement process exceeded the stipulated duration," the report stated. In Petra, 154 companies were invited to bid for 25 projects, with six companies passing the first stage without submitting required documents. Three were awarded Letters of Acceptance (LOA) for flood mitigation projects worth over RM811mil in Penang, Pahang, and Selangor. For the Rural and Regional Development Ministry, no project list was provided during the first stage. Of the 721 companies that participated, 485 (67.3%) were approved by the KKDW Procurement Board between Aug 7 and Oct 2, 2023. The audit found that seven companies lacking financial capacity were invited to participate in the second round up to four times, with one company awarded a RM40.1 million road upgrade project in Tumpat, Kelantan. The Works Ministry and Sabah Public Works Department (JKR) fully complied with the Finance Ministry's directive, with 113 companies meeting criteria passing the first stage. However, Petra and the Rural and Regional Development ministries did not comply with evaluation criteria, leading to ineligible companies being awarded LOAs. Petra acknowledged that the list for Pre-Qualification was obtained through the Construction Industry Development Board's (CIDB) system. The Works Ministry noted an outdated database for the Pan Borneo Highway Sabah Phase 1B Project procurement, and plans to use the CIDB database for future projects to ensure data accuracy. The Rural and Regional Development Ministry admitted the absence of a complete contractor register approved by the Finance Ministry. The Finance Ministry committed to improving the tender process with guidelines for ministries, using the Electronic Government Procurement Application (eGPA) to enhance efficiency and decision-making. The Auditor-General recommended strategic preliminary screening, specific project types, clear Pre-Qualification criteria, maximum timeframes, and an integrated company database to improve transparency and efficiency.
