MyProcurement Portal Raises Eyebrows

The newly launched MyProcurement Portal has raised a number of questions on corporations receiving government contracts in Malaysia. Parliamentarian, Tony Pua, recently called on the authorities to investigate four contracts which were awarded by the Education Ministry, the Royal Malaysian Police and the Defence Ministry.

In particular, Pua (DAP-Petaling Jaya Utara) raised the issue of a RM77 mil contract to build a hostel for 200 students at a school in Terengganu. Since his questioning, the figure as reported on the website was an error, and now states RM7.8 mil, the correct figure.

However, the corporation in question, Rafa Sepakat Sdn Bhd, has been awarded RM53.4 mil worth of contracts in the last six months. Furthermore, the company was reported by Malaysiakini to have begun business less than three years ago. Its key shareholder and director, Abdul Rahman Abdul Ghani, is 23 years of age.

Malaysiakini quotes Pua as saying:

The company was only established at the end of December 2007, and as at Dec 3, 2008 it had no revenue in its books.

Pua’s research on the MyProcurement Portal, KDI Garment Sdn Bhd, recipient of a RM82.8 mill contract awarded by the Defence Ministry for the supply of body-vest protection, reveals:

A check with the Registrar of Companies showed that KDI Garment last filed their accounts in July 2006, with a revenue of RM1.75 million and a profit of only RM1,600… Should such a company be awarded a contract that is nearly 50 times its last known revenue?

More recently, Pua found the Defence Ministry had awarded RM27.5 million contract to supply women’s leather shoes to Syarikat Visi Footwear Sdn Bhd.

Tweet This Post Plurk This Post Buzz This Post Delicious Digg This Post Facebook Reddit Stumble This Post