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'Royal' hospital project: A case of rent-seeking
Published:  Apr 5, 2010 6:59 AM
Updated: Apr 6, 2010 3:01 AM

your say 'Negotiated tender runs counter to the spirit of NEM where the benefits of each project should be spread out to the masses, not confining only to the contract holder. Indeed, in Najib Razak's view, this is rent-seeking.'

Hospital sub-contractor seeks to wind up princess' firm

Cala: What do you expect? First, it is grossly wrong for ‘the executive' to award the said project to Sunshine Fleet based on negotiated tender. Such kind of procurement practice is only suitable for standardised and repetitive designs, whose materials specifications are predictable.

A negotiated tender for a specialised hospital project means that the practice of transparency and accountability are not enforced as in the case of open tender.

Second, it is clear as broad daylight that ‘the executive' is not encouraging meritocracy as the basis of award. It's small wonder that negotiated tenders give rise to job stoppages and cost over-run.

In sum hence, negotiated tender runs counter to the spirit of NEM (New Economic Model) where the benefits of each project should be spread out to the masses, not confining only to the contract holder. Indeed, in (Prime Minister) Najib Razak's view, this is rent-seeking.

Andrew: Why do members of royalty, who each receive individual monthly stipends from public funds, have to involve themselves in business? Are their stipends insufficient? Are they professionally qualified to secure public contracts in the first place?

If yes, why then are these ‘royal' companies immediately sub-contract out their jobs to others just like any BN crony ‘Ali-Baba-type' company? Why can they not implement the contracts they secure themselves?

Indeed, why do royals sully their royal status by getting involved in business in the first place?

Artchan: In the first place, why was the contract given to the sultan's sister. Did she have any prior experience or track record? It seems like the contract is given to buy support from the royal families. (Contruction firm) Gamuda and the Perak royalty comes to mind.

Sheila Dowle: The royals in Britain cannot make money other than off their estate - no businesses or contracts, so that they remain neutral. Here, the royals need to emulate such behaviour. Please have some dignity, integrity and pride in your positions if you still want respect from the rakyat. Otherwise, don't complain when talk becomes ‘derhaka' or seditious.

The royalty are supposed to put the people first and their position is to be used to help the rakyat, not themselves. Are the royals so blind to their responsibilities?

Hyatt-Merton: This is just symptomatic of the mess the country is in. Mahathir Mohamad made corruption and cronyism the official policy, protected crooks and thieves behind the veil of the OSA (aided with all manner of the legislature), dismantled democratic voice and the checks and balances of government.

Today this same machine continues to plunder the country and bleed us all dry. Yet they dare talk about GST (goods and services tax) and the removal of subsidies.

Gem: The objective of many of these main contractors is simply to harvest money. They do not have any construction know-how. Thus they simply sub-contract out the entire project. There may even be sub-contractors who sub-contract out the entire sub-contract.

Geronimo: As a result of the failure to complete the project, (Perkasa chief) Ibrahim Ali will once again blame the Chinese for this mess. He is going to vet through the supply chain and if there are any Chinese involved, I'll feel sorry for the supplier.

Rakyat: Another day and another scandal. Nothing seems to change in Bolehland. When thieves are entrusted with administrating the nation you know what the end result is. Time to kick this band of crooks out of Putrajaya.

Azaman Abu Bakar: I wonder whether there is a clause in the contract that does not allow sub-contracting, except to properly nominated sub-contractors?

Jago: RM482 million! What a waste! If this project had gone through open tender procedure, I reckon the cost would had been around RM260 million, so RM222 million could have been saved. But alas, this amount has gone into the pockets of a few.

I want to ask PM Najib, are you going to implement GST to finance other negotiated projects. Please do not take the ordinary rakyat's money to enrich businessmen and politicians.

Tkc: It is precisely these kinds of situations that can be exploited by some politicians with the wrong agenda to compromise the impartiality of the royal households. It is hard to imagine how a princess can have the right experience or domain knowledge to manage a construction business.

My suggestion is for the royal family to set up a panel of trustees to provide corporate governance guidance to family members that embark on businesses.

Bijan: It seems to be a norm. Even if this hospital is completed, I would not trust its structure. Roofs may collapse, they may leak, engines can go missing yet we are told the government is clean.

Why was the contract awarded to such shady companies in the first place? Maybe the former Selangor menteri besar can explain after he finish explaining his multi-million dollar bungalow and many other things.

When is this going to come to a halt? When are we going to see accountability and transparency? Are we supposed to pay GST to cover for all this misdeeds by our politicians?

Min: What more is new? With such a crony system, can we ever expect Umno and BN to change? When children are pampered and given lavish gifts, they will throw a tantrum if suddenly the gifts are taken away. Can ordinary Malays ever dream of getting a small portion of these ‘cakes'? Jangan mimpi (No need to dream).

AMT: Transparency? You must be kidding... Now you know why the royalty is serving their political masters. Taxpayers' money is abused again. MACC, where are you?

Inspector Closseau: MACC will not go after this multi-million ringgit case. It only goes after 'cows and cars' and cases involving thousands of ringgit. They are not trained to investigate multi-million ringgit cases.

CA: BN is notorious for win-lose situation in everything they do. Enriching themselves while the royalty is ridiculed, and the rakyat burdened.

 


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