Overpayment: what has gone wrong?

images10The Government could be losing billions of ringgit every year through excessive payments for contracts and procurements for a wide range of things ranging from water tunnels to IT contracts and purchase of computers.
Estimates based on government spending indicate that if one assumes overpayment on contracts is just 20%, then the losses could come up to as much as RM28 billion a year. Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah acknowledged that the amount is a lot but could not give an exact figure.(sources: the star online)

That’s very huge amount of money…our money, tax-payer money..! I FEEL a little puzzled, how this happened? The Government is expanding its electronic procurement system, called e-Perolehan, to improve transparency. We are in the dark over how government tenders at the state or federal levels are carried out? I believe most mega government project, contract jobs were awarded on direct negotiation basis. Last November, Prime Minister Datuk Seri Najib Tun Razak affirmed that the Government “will still have the discretion to determine if there will be direct negotiations”.

Is a high time for SPRM to step-in to catch the culprits, and for the government to safeguard and to cut down expenditure on wasteful spending.

Note: So how does one bid for government contracts? Nak belajar juga ni…hehehe

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