Monday, January 10, 2011

MACC Probes KTMB on Multi-Million Ringgit Contract

Jan 10, 2011 - Keretapi Tanah Melayu Bhd (KTMB) is being investigated by Malaysian Anti-Corruption Commission (MACC) for allegedly awarding a multi-million ringgit contract to an "underqualified" company.

MACC investigation director Mustafar Ali confirmed a team of officers was sent to obtain some documents in connection with the allegation.

He, however, declined further comment when asked on investigations into the case.

“I can only confirm but that’s all I can say as the investigation is ongoing,” Mustafar told The Malay Mail this morning.

The contract was to handle a project said to be valued at close to RM100 million for revamping ticketing systems in all 56 KTM Komuter stations around the Klang Valley and Negri Sembilan.

It was reported in an online news portal, a local company won the award with a RM85 million bid, even though there were lower bids by companies with more experience servicing the KTMB systems.

It was also mentioned in the article the technical evaluation processes were rigged to accommodate the capabilities of the selected company.

The portal said MACC raided the offices of KTMB on Dec 14 and confiscated key documents, understood to include the technical scoresheets.

The second was said to have been conducted last week to collect more evidence.

The online portal also mentioned that the tender notice was published and announced on Aug 3 last year and submissions were closed on Sept 29.

It was also mentioned that the KTMB technical team did not conduct any site visit or request for demonstrations by the bidder, as required.

There was no evaluation of the tenders of the five companies that were shortlisted.

The portal also said the two companies with existing projects involving the ticketing systems were rejected, although they had put in bids of RM69.8 million and RM72.6 million, respectively.

It is understood that the tender was awarded based on the policy of the 15 per cent bracket of the estimated budget of the project.

A RM100 million project would mean that the bracket would only enable companies with bids of 15 per cent above or below the budget being awarded the contract.

This automatically disqualified the previous two companies which offered lower bids even though they had more experience in the field.

Reported by The Malay Mail

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