SCwatch


SHADY CONTRACTS RAISE SCRUTINY ON UMNO LED GOVT’S “OPEN TENDER SYSTEM”

When the UMNO led Barisan Nasional under then Prime Minister Abdullah Ahmad Badawi aka Pak Lah, won a landslide in 2004 under his manifesto of ‘Work with me, not under me’, one of the key reforms he made (rhetorically, we find out later) was  that contracts awarded by government and government linked entities – must be on an open tender basis.

It was and unfortunately, until today, still  a big problem to address – as it is seen as having ‘contributed’ to the humongous debt the country has amassed over the years – touching nearly 55% of GDP – of which the economic effects on the man on the street is well, quite scary.

If the debt was unavoidable due to circumstances beyond the control of the Government, then it’s fine…..they tried their best.

But was it really unavoidable?

Until today, the practice of  major contracts having been awarded to relatives of senior officials of UMNO eg Jamaluddin Jarjis or JJ (former Finance Minister II and currently envoy to Washington) persists.

If those parties had the technical know-how to fulfil the contract requirements, that may be understandable…….but they don’t!

That’s where a ‘joint-venture’ with a party with the technical know-how to do the work takes place.

The UMNO linked party originally awarded the contract will claim that they have the TECHNICAL KNOW-WHO! 

This means that a consideration (cash, of course) will be demanded from their technical know-how partners for ‘bringing them into the picture’.

Of course, in most cases the partner brought in for their expertise will not compromise on their own profit margins to pay for that ‘consideration’.

This means that the cost of the contract will be increased accordingly to pay the promoters!

As most of these contracts are originally in the hundreds of million or billions of Ringgit, even several percentage points to pay for the ‘incentive’ costs translate to large sums of money – in reality, it may be much higher than just ‘several percentage points’!

This results in a relatively small number of people collecting stratospherically large sums of money whilst the remaining population are expected to pay for those ‘costly’ projects…….in the form of road tolls, airport tax, poorer education, higher costs of living etc.

One such project that doesn’t seem to want to go away from media spotlight is the submarine project that is linked to the current PM, Najib……and is further complicated with his man’s (Razak Baginda) involvement in the project with a Mongolian lady who was later killed and whose body was subsequently blown up with C-4 dynamite.

What makes it fodder for Najib’s political opponents may be because those convicted for the Mongolian’s murder were reported to be in the police detail that was protecting the Prime Minister then!

The constant uncovering of the financial excesses is clearly upsetting the people of Malaysia……irrespective of race or religion.

The UMNO led Government is currently clearly trying to gain some mileage by dishing out goodies to the people before the General Elections due end of this year……again using tax-payers’ money….and more of concern, also utilizing the savings of the people via EPF and KWAP!

And to think that the people are oblivious to the manoeuvrings of the UMNO led Government……is well, fool hardy!


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