Government losses can reach RM28bil a year – or more due to overpayment

The 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.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah acknowledged that the amount is a lot but could not give an exact figure.

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.

Other mains points from our StarProbe are:

● Hundreds of millions of ringgit in overcharging are taking place for ICT, which is a multi-billion-ringgit industry. Contract prices can sometimes be more than 50% than if the deals were done on a tender basis.

● Project finance on favourable terms from foreign countries – the so-called soft loans – can result in contractors being restricted largely to those from the country providing financing, resulting in considerably higher costs.

● Open tenders, done properly and with appropriate evaluation, are one of the most effective ways of reducing the costs to government. At least two state governments see great benefits in open tenders.

● Malaysia falls short in comparison with other countries in terms of calling for and disclosure of open tenders and their details. There is no centralised system.

● The Government is keen to cut wasteful spending and will, as far as possible, have open tenders from now on.


comments

'Losses could come up to RM 28 BILLION a year' based on 20% Of OVER-PAYMENT to BN CRONY CONTRACTORS . To this, add another 20% for UNDER- COUNTER PAYMENT to the MASTERMINDS with powers to APPROVE/NEGOTIATE these contracts/projects .

Add 20% to the other 20% ... and we can clearly see 'VISION 20 -20' ---the most successful business formula ever to be devised...

All Malaysians (assuming 28 million) would each be RM1,000 richer personally, if this RM28 Billion were distrinbuted to us equally ! Instead the UMNOputras and cronies have Embezzled these funds through "overpayments" which should be renamed "Plunder", "Looting", "Piracy" and "Embezzlement" and a Total "Breach of Public Trust" ... but no, "overpayments" is not illegal and therefore let's these UMNOputras, cronies, and their civil service pariah minions off the legal hook, which is why it is termed as such, these bare-faced crooks !!!