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The Sun
21-07-2025
- Business
- The Sun
UKM procurement irregularities found in RM66.64 million tenders
KUALA LUMPUR: Three out of seven procurement tenders by Universiti Kebangsaan Malaysia (UKM) worth RM66.64 million did not comply with stipulated procedures, according to the Auditor-General's Report (LKAN) 2/2025. The report, tabled in the Dewan Rakyat, highlighted serious irregularities in tender procurement and governance at the university. The UKM Tender Procurement Committee selected companies not recommended by the Technical Evaluation Committee, Financial Evaluation Committee, and Pre-Tender Committee. 'There were serious irregularities and weaknesses in the tender procurement process and procurement management governance at UKM,' the report stated. It further noted that the Pre-Tender Committee endorsed a company that had failed at the Tender Evaluation Committee level for a project involving the upgrading and replacement of 16 elevator units. The Vice-Chancellor, as Procurement Committee chairman, is responsible for ensuring proper governance under subsection 12(3) of the UKM Constitution. UKM also failed to appoint a Ministry of Finance (MoF) representative to the Procurement Committee, while the Ministry of Higher Education (KPT) representative did not attend meetings for the three tenders. Non-compliances included selecting a Linear Accelerator (LINAC) equipment supplier that did not meet integration specifications and advancing a technically disqualified company for food catering services to the final tender stage. A tender was awarded to a company listed for ailing projects in elevator replacement works, disregarding recommendations from three evaluation committees. This led to the contract being awarded to an incapable firm. The National Audit Department recommended revising UKM's procurement guidelines to align with Treasury Circulars and ensuring strict monitoring of LINAC supply and elevator works at Hospital Canselor Tuanku Muhriz (HCTM). 'Disciplinary action is also recommended against officers and committee members involved,' the report added. – Bernama
The Star
21-07-2025
- Business
- The Star
Auditor-General's Report: Three UKM tenders worth over RM50mil did not follow SOP
PETALING JAYA: Three out of seven procurement tenders worth more than RM50mil carried out at Universiti Kebangsaan Malaysia (UKM) did not follow the required procurement procedures, according to the Auditor-General's Report 2/2025. In these cases, the report highlighted that an audit was carried out on seven procurement tenders worth RM66.64mil in UKM covering supplies, services and works carried out from November 2024 to January 2025. The report found that the tender procurement committee selected companies that were not recommended by the technical evaluation committee, financial evaluation committee and pre-tender committee. "The tender process for infrastructure upgrades at four residential colleges on UKM's main campus in Bangi, worth RM8.19mil, was conducted in accordance with regulations. "However, three tenders at HCTM were found to have breached procurement rules. "The audit revealed serious irregularities and weaknesses in the tender procurement process and governance at UKM," said the report released on Monday (July 21). For all three tenders mentioned, UKM did not appoint a representative from the Finance Ministry to the tender procurement committee. Although a representative from the Higher Education Ministry was appointed, they did not attend the tender committee meetings. Among the lapses was the awarding of a contract to a company whose medical equipment failed to meet integration specifications with UKM's existing system, it said, adding that the technical committee's concerns were not taken into account. In another case, a separate company that failed the technical evaluation for catering services was still brought before the committee, in breach of a Treasury circular. Similarly, the Auditor-General found that the tender procurement committee made decisions collectively, including the pre-tender committee endorsing a company that had failed the evaluation stage for a project involving the upgrading and replacement of 16 elevators, revealed the report. To prevent further breaches, the Auditor-General recommended that UKM revise its procurement guidelines to align with Treasury regulations and financial rules. The Auditor-General also called for close monitoring of the implementation of the three tenders and disciplinary action against officers and committee members found to have violated procedures. In response, the Higher Education Department issued a reminder letter titled "Strengthening Procurement Management" on March 25, 2025 to all vice-chancellors of public universities, following audit findings. "The letter urged strict adherence to Treasury Circulars in procurement procedures," it said. It also explained that the Higher Education Ministry's appointed representatives in UKM's tender procurement committee are the deputy secretaries from the development division (technical and planning). "However, these representatives are not mandatory members for quorum purposes, and they are not part of UKM's board of directors nor designated alternates, as is the practice in other public universities," it said.
