Kementah Cancels Five Contracts

The latest picture of PCU Maharaja Lela - LCS1 - taken on January 1. The biggest leakage ever. DSU Mohamad Hasan.

SHAH ALAM: The Defence Ministry today announced the cancellation of five contracts for supply, services, and infrastructure projects. It did not name the projects, costs, beneficiaries, and the reason for the cancellation. The ministry in a release said it took serious notice of the statement made by the Prime Minister DS Anwar Ibrahim on expenditure leakages on January 17, 2022.

The ministry said it had issued open tenders for the three branches of the Armed Forces (Army, RMN and RMAF). For 2023, five procurements (contracts) for supply, services, and infrastructure projects have been cancelled and would be implemented through the open tender process.

Which likely meant that five contracts were awarded without open tenders. That said open tenders doesn’t mean that projects are viable or should be funded. Malaysian Defence

The ministry further said it will not compromise with any party for leakage and misconduct throughout the procurement process.

Since they already cancelled the five contracts likely for the very reasons stated above, one wonders whether the ministry will lodge reports against them. Malaysian Defence.

“The ministry too will not hesitate to report any leaks and opacity against the procurement process to the authorities for further action.

Based on the media release, Malaysian Defence felt that the Defence Ministry is not serious in getting rid of the leakages scourge. If it were, it would have said that it had lodged reports about the five contracts already. If they think it was serious enough to cancel them, why further action is not warranted then? Cancelling the project will not solve the problem. They could be revived if a new government take charge and they could also take part in the open tender and even be selected for it. Anyhow, if one want to talk about leakages, there is of course, the LCS project.

— Malaysian Defence

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6 Comments

  1. Well, well, well. Wily Tuk Mat is showing someone he’s good at toeing the line. He probably saw there’s nothing appetising in the 5 cancelled projects and more importantly, unlikely to backfire in his face. I agree he could have taken further action on the winners of the 5 projects but hey, it’s early days yet 😉

  2. Like the cancelled M109 during the previous Pakatan rule, its all a wayang show meant to appease their new political overlords whom care more about the image they present rather than real substance.

    Which is why I concur if they really are serious they would go all out with an inquiry on those 5 contracts (which is suspiciously remains unknown) if their really is some hanky panky. For instance, service contracts doesn’t have to be open tendered if directly awarded to the local brand holder (ie maintenance for the new Kembalik Volvos of course should go to Volvo Trucks Malaysia). It doesn’t make sense if thru tender, by chance Company ABC won the service contract but it voids the Volvo warranty.

  3. On the SPH, as I had stated before, it was because somebody saw an opportunity. As for your example, that is why in some instance, the government should allow for direct award due to the very issue you are talking. As I said before there is no need to for a tender to buy Carl Gustav recoilless rifle, we should just buy direct from Saab. It’s the same with the tender for the 7.62mm guns for the EC725s. We should just buy direct from FN Herstal, there is no need to go through a tender.

  4. An opportunity for some political bigwig to feather his ambitions but the TDM thought they could ride it and get what they wanted. Too bad the politicians won and the TDM got nothing and still nothing until today.

    “no need to for a tender to buy”
    Disagree. In my example it is okay to direct nego on services for equipment bought but not to buy the equipment themselves. That, no matter what, should be via open blind tenders where no parties could have an overwhelming say on exactly what to buy but they must accept whatever that met their tender requirements. For the Caracal guns, FN Herstal should be invited to bid and only acquiesce to 3rd parties if they officially refused.

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