MACC must look into RM700mil Spanco deal, says MP

MACC must look into RM700mil Spanco deal, says MP

Taiping MP Wong Kah Woh said many questions about the deal need to be answered, especially why a substantially cheaper option was cast aside.

Former public accounts committee chairman Wong Kah Woh said Berjaya Group founder Vincent Tan’s comments alleged non-compliance by the government. (Facebook pic)
PETALING JAYA:
The Malaysian Anti-Corruption Commission (MACC) must investigate the government’s decision to extend a car fleet deal with a company at a cost of RM700 million more than an alternative deal it was slated to enter into with a rival.

Taiping MP Wong Kah Woh said many questions about the deal need to be answered, especially why a substantially cheaper option was cast aside.

Wong’s comments came after Berjaya Group founder Vincent Tan said yesterday his company had commenced legal action against the government and Spanco Sdn Bhd over a cancelled concession to supply fleet vehicles.

Tan alleged that a Berjaya-Naza joint-venture had clinched the deal but was arbitrarily replaced by Spanco in 2020, at an additional cost of RM700 million to taxpayers.

In a statement today, Wong, the former public accounts committee chairman, said Tan’s claim was serious as it alleged non-compliance by the government of the day.

“MACC should investigate this urgently,” he said, adding that a few important points need answers, including why a letter of intent issued to Berjaya-Naza was cancelled.

“Who was the tender board chairman at that time?

“Why was the 2019 decision by the government tender board not complied with?

“What is the justification for Muhyiddin (former prime minister Muhyiddin Yassin) to give Spanco the contract, which is said to cost an extra RM700 million?” he said.

At a press conference yesterday, Tan claimed his consortium had received a letter of intent from the government, but three months after Muhyiddin became the prime minister, he was notified that the deal had been terminated.

He also alleged the tender reverted to Spanco, despite the Berjaya-Naza bid being RM700 million cheaper than Spanco’s offer.

In 2018, the government had called on companies to bid for a contract to supply, maintain and manage its fleet of official vehicles for the next 15 years.

Berjaya and Naza formed a consortium to bid for the contract that reportedly involved some 12,500 vehicles worth an estimated RM300 million annually, from the fifth year of the contract onward.

Aside from Berjaya-Naza, several other companies submitted their bids, including Sime Darby Bhd, DRB-HICOM Bhd, Samling Group, Comos, Go Auto, and Spanco, which had held the concession since 1994.

Perak DAP has since lodged a MACC report over the matter.

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