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Parliament has passed the Government Procurement Act — a law that Putrajaya insists will bring transparency and reform and is key to preventing another scandal on the scale of 1MDB. However, critics warn of loopholes in the law that could invite abuse. On this episode of #ConsiderThis Melisa Idris speaks with Pushpan Murugiah, CEO of The Center to Combat Corruption and Cronyism (C4 Center).

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00:00hello and good evening i'm melissa idris welcome to consider this this is the show where we want
00:16you to consider and then reconsider what you know of the news of the day so parliament has passed
00:21the government procurement act a law that putra jaya says is key to preventing another scandal
00:29on the scale of 1 mdb and they say it will be to standardize procurement across federal and state
00:35levels however critics are warning of loopholes within the law that could invite abuse so joining
00:42us on the show to discuss this further is pushburn murugaya who is the ceo of the center to combat
00:49corruption and cronism or better known as the c4 center bushman thank you so much for being on the
00:54show with me today let's let's get right into it talk to me a little bit about this um the iteration
01:00of the government procurement bill that has now passed into legislation what are your um your key
01:05concerns with this piece of law hi melissa and thanks for having me uh okay i think first of all i want to
01:13put it out there that um there is a narrative going on that you know civil society and mps uh don't want
01:19this act actually what we are is we are proponents for a particular public procurement act to regulate
01:24this particular area but unfortunately the act that was passed through uh recently is not the act
01:32that we can accept in any way form a matter why let me give you a few examples first of all the powers
01:39given to the minister is extremely wide he can actually decide on any procurement with no upper limit
01:47ceiling that's the first red flag really have then if you look at the act it does prescribe a um
01:54procurement board which is good but again the pokemon board if they come up with a decision
02:02the discretion to accept or not is up to the minister again powerful discretionary power which makes it
02:11redundant in that sense then you have to oversight okay there is another good point saying yes now we
02:16have tribunals for you to uh make a complaint if there's a grievances issue okay that's good but
02:22then we go back to the same problem who appoints to travel or sets up the procedure
02:26it's the minister so all this while civil societies and mps who have been fighting for
02:33the independence of institutions for example macc we wanted to be independent ag and pp separation because
02:39there's issues of potentially control but in this particular case the act actually codifies the
02:45minister's power in so many areas that it gives such a wide discretionary powers and it allows for
02:53executives to control the whole process that's true and the other more common problem we have also is now we
03:01have a minister of finance who is empowered here but don't forget he's also the prime minister
03:11a double whammy is there and this gives us fear factor because look at najib he had both portfolio
03:18and what happened to them one mdb happened so the anxiety is there the fear factor is is real and one
03:24more important point i think i also for a c4 is very important this act actually in a way allows for
03:31the codification of a crony list because in order to be a participant in the tenders you have to be
03:38listed in the list which is approved by authorizing body and that authorizing body can allow or disallow you
03:47to be put in the list without giving any excuse or reasoning which means it allows you now to
03:54have a crony list or codify a list that more is perhaps you know you can become uh for friends of
04:01yours who are part of your political circles so those concerns are very obvious in this particular act
04:09and these are the few concerns we actually have in terms of those act okay can i can i get deeper into
04:14them so when you are talking about um the expansion of power or that you are concerned about the amount of
04:23power being held by a minister are you referring to the finance minister specifically or any minister
04:30okay so one of the one of the concerns or one of the reasons for or the rationale behind having this act
04:37was to curb ministerial power so not to have political interference in terms of government procurement
04:47does this act not address that concern that is the narrative that has been sold but unfortunately the
04:57contents and details of the act actually does not reflect any of the the object i mean the spirit of
05:04the nature of the whole act now those days when you do not have the act all right you have ministers who
05:12you have people in power who do control give instructions we all know that for a fact we have
05:16no proof but it happens but the fact that it happens we can't say much but now the fact that it's codified
05:25you have an act that now codifies their powers their discretion powers and even if they do that in the
05:31future there is no recourse or no excuse to say anything anymore you are basically codifying all the bad
05:39practices that happen before this into an act and entrenching those practices that's our concern
05:46so are you saying that you know so the the idea was that this law would help this country
05:53prevent another 1mdb scandal we never want to see a scandal of that scale again you c4 does not believe
06:00that this act will address the structural causes that allowed for those past abuses
06:05if not it will actually um entrench those practices and now onwards you will not have
06:14uh any more because as i have i've asked i put this question forward to all the mps who will pass it
06:20act tell me how does this particular act in this instance will solve your 1mdb or will stop the 1mdb
06:27how would this act in any way stop your lcs how would this act in any way stop your scoping scandal
06:35if you realize it that this act actually allows those contracts to go through and that scanner go
06:41through you will realize how dangerous this particular act is all right uh could you push
06:48elaborate a little bit so when you talked about the codification of a crony list can you elaborate what
06:54you mean by that what does this crony list actually entail what does the law allow for okay it's it's
07:01it's a bit of you have to do a little analysis but i'll try to make it as articulate as possible so
07:06now in order to participate in any government procurement you have to be uh uh do you have to be
07:15listed in a particular list to be eligible to uh participate now in order to be in that list you
07:24have to get the approval of an authorizing body all right that authorizing body it can be the minister
07:32that gives you the contract which is the minister for example this example is minister finance so they
07:36can approve whoever that sits on a particular list all right now if for example you have a company that
07:42wants to be in the list but he has got alignment to maybe opposition uh party or people who are
07:49not in favor of the government that authorizing body can reject his application to be in that list
07:56which means in other words if he abused his power to a full extent all he has to do is approve people
08:02that they are comfortable with his his cronies political alignments those companies will be parked
08:09in the list to be eligible for government contracts so in that sense it allows for setting up of a crony list
08:16right uh i'm just wondering so some politicians former politicians have also kind of responded
08:23to the government procurement act rafizi is someone who's been quite vocal about it um and he says that
08:30this is a good law but it shouldn't have been bulldozed through parliament should we be reading into
08:36um the process and the speed through which it was passed that entire process should we be concerned
08:42about it do you agree with rafizi pushman no personally i don't agree rafizi and i think again
08:49personally um the reason why it was bulldozed is because it actually gives a lot of powers to the minister
08:58that is the reason why it bulldozed so quickly let me contextualize for you in malaysia the biggest
09:05problem we have is corruption we so endemic is entrenched in our system in our political
09:11structure in our bureaucracy it's so it's our biggest problem all right and yet the lord is
09:18supposed to address our biggest problem was us within three and a half days you put it on monday
09:27and then on thursday afternoon you pass the act that supposedly to deal with our biggest problem
09:35that is the concern that i have i mean how can you do that and also bear in mind i don't this may be
09:41a little bit more conspiracy in that sense but at that particular time the ura was already put out
09:48there bill was already out there everybody is discussing please don't agree with it everybody is
09:53discussing about it that out of the blue you have a public procurement act sneaking into the table to be
10:02table quietly so i mean it may sound conspiracy but i think it's it gives a fear factor that such a
10:11powerful uh bill to deal with our biggest problem was done in such a quietly secretive and very fast
10:20approval method to get it done it's a bit of course of a concern and in fact mps from both sides
10:25government and opposition and still society if you're not saying don't don't go through
10:31hold on change strengthening make it more powerful and really useful then you go through
10:38that's our only demand yeah so could you also elaborate what change what specifically if there
10:45was still a chance to amend the bill what changes would you insist upon i think initially what we wanted
10:51was to see how we can limit the participation or the control or the influence of the executive
10:57that is our biggest concern in any of our government issues of interest issues is how the the executive
11:04controls the entire process that has to be controlled that has to be limited no we're not saying
11:09executive cannot function cannot do their work they have to but they have to be independent oversight
11:15mechanism independent processes uh clear and transparent procurement processes that actually help the
11:22nation go through development in the proper way not where the minister has so wide powers that he can
11:30do whatever he wants that is not a bill that we want okay uh and given that the act has actually passed
11:37do you think uh what what happens now is it too late do either is there still an opportunity for citizens
11:44activists like yourself parliamentarians um to be vigilant or to what what can we do to
11:51safeguard from um abuse yeah i mean first point i hope this message goes through to all mps
11:59mps please you represent the interests of the people do not have party uh interest first
12:07instead of people's interest instead of people's interest this bill does not prevent corruption it
12:13actually and in plenty of other issues so please be truthful when you want to explain the constituency
12:19what is the context of the bill and i think going forward there are a few things we can do one is
12:24really ask for the government to expressly commit that they will amend those uh extensively wide powers and
12:33and manage in such such a way that there's a lot of consultation with us to make it into a much more
12:38workable act that's one perhaps going forward they can have a special um independent commission to see
12:45how to implement uh and also come up with regulations and codes under the act that will actually strengthen
12:52the independence of those institutions and trying to make it much more workable in that sense so there are
12:57some things we can do but we have to have our engagement csos academics to come together and see
13:03how to build a stronger framework on top of what has been passed all right pushman thank you so much
13:10for highlighting these concerns we appreciate your time push from the c4 center we're going to take a
13:15quick break here and consider this we'll be back with more on the government procurement act after this stay tuned
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