KOTA KINABALU: A total of 413 attempts to abuse subsidised petrol was foiled by Ops Titik, which was carried by the Domestic Trade, Co-operatives and Consumerism Ministry (MDTCC) from May to Sept 24, said Dato Sri Hassan Malek.
Speaking to reporters after launching the Malaysia Competition Commission’s (MyCC) two handbooks on bid rigging at a hotel near here yesterday, the Domestic Trade, Co-operatives and Consumerism Minister said the seizures were worth RM20.37 million.
He also said operation also resulted in the seizure of 422.82 million litres of diesel with subsidy of RM295.97 million.
“As such, the problem of stock-out of diesel at kiosks which occured monthly is over,” he said after launching the book ‘Garis Panduan Menentang Tipuan Bida Dalam Perolehan Awam’ and the book ‘Help Us Detect Bid-Rigging’ here yesterday.
Hasan said the ministry appreciates the contribution and cooperation of the public who provide information on the abuse of subsidised goods.
With regard to bid rigging, Hassan warned that it was an offence under Section 4(2)(d) of the Competition Act 2010 and that perpetrators found guilty could be fined up to a maximum of 10 percent of its worldwide turnover.
He said bid rigging practices by tenderers during public procurement procedures were a great threat for public institutions, especially with regard to cost-intensive and technologically advanced investments and projects.
He added that a pro-active approach by procurement bodies to detect and deter bid rigging would generate savings, improve budgets and the reputation of the public authorities.
Hassan also said for Malaysia, public procurement was an important means for not only meeting day-to-day functional needs, but also for fulfilling socio-economic objectives and promoting economic growth.
“Malaysian economic reports have indicated that for the past 10 years, public expenditure amounted to approximately 24 to 33 percent of the country’s Gross Domestic Product (GDP), higher than most OECD (Organisation of Economic Cooperation and Development) countries,” he said.
Studies by OECD showed that government procurements accounted for a substantial part of the economy, with 10 to 15 percent of the national budgets in developed countries, and up to 20 percent in developing countries.
“From here, we can see the huge impact procurement has over the country’s economy,” he said.
“Moreover, public procurement utilises public funds. Hence the principles of public accountability, transparent management, best value for money, open competition as well as fair dealings are the factors that are heavily considered by the government in its management of tenders,” he said.
“Unfortunately, the annual reports from the head of National Audit often show cases of goods, services and works procurement paid more than the market value or are substandard,” he said.
Also present at the event was MyCC chairperson, Tan Sri Dato Seri Siti Norma Yaakob.