Akhbar Satar, president of Malaysian Association of Certified Fraud Examiners, said Putrajaya stipulates that procurement should follow five key principles: public accountability, transparency, value for money, open and fair competition, and fair dealings.

However, he said the report showed that these principles were not upheld, citing cases of procurement at above-market prices for under utilised and substandard goods and services.

“It is pointless for the government to develop good policies if the majority of civil servants, contractors and businessmen are not ethical and do not have the moral fibre to implement the policies with integrity and accountability.

“Fraud and corruption in procurement is still common in Malaysia. Our priority must be to prevent abuse and to enhance the procurement process within strong institutions,” he said in a statement today.

Akhbar said awarding projects through direct negotiations was not fundamentally wrong, but maintained that it would only be acceptable if done in complete transparency and integrity.

He also warned that open tenders were not totally free from elements of corruption, although it was a way to promote integrity and transparency.

“The government must stop lobbying for projects from big or unqualified crony companies who later sell the project to another contractor, who sometimes even creates up to five layers of contracting without any value added,” he said.