Tuesday, November 04, 2008

Open Tender to be Adopted

Deputy Prime Minister said yesterday that the Government will ensure thet a large portion of Government's procurement will be via open and restricted tenders. This is to ensure transparency and value for money as well as to generate more income, the Star reported. However, under certain conditions, the Government will still have the discretion to determine if direct negotiations is necessary.

This move should be lauded. Professionals have all along called for this procurement mode as this is the best to determine the best value for money, provided all participants are put on the same parity band.

We believe, yes, there is room for direct negotiations, only for projects where we do not have the skills and expertise to implement. Here again this should be with a proviso that there should be a transfer of technology during the implementation stage. And negotiations should only be carried out with those who have the proven track record and financial capability to carry out such work.

The NST reported in October 2007 Dato Shahrir Samad (then Chairman of the PAC) that Government projects should be awarded through open tenders instead of direct negotiations.
The call was made after the PAC went through the accounts of the Ministry of Youth and Sports on the construction of 9 IKBNs, and the purchase of equipments that the Government paid RM8.39 million above market prices.

Lets hope that the DPM will implement what he said he will do.

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