Salim Bashir asked why the Barisan Nasional-Perikatan Nasional caretaker government had rushed into directly signing an agreement involving RM3.46 billion with a YTL Holdings Bhd subsidiary without calling for tenders.
“A caretaker government is a parliamentary convention to ensure the smooth running of the country. It kicks in when Parliament is dissolved to pave the way for a general election, and the old Cabinet continues to govern until a new government is formed.
“In the absence of explicit guidelines that regulate the working of the interim government, it’s conventionally understood that the caretaker government should not make any policy decisions with grave financial implications that will bind the successor government,” Salim told FMT.
Last week, FMT reported that 32 highway toll concessionaires had protested the government’s move to directly award the MLFF project to a private company as they were not consulted and the total cost is overpriced by 30%.
However, works minister Alexander Nanta Linggi said the award for the project had yet to be finalised, and that the government only approved an “appointment agreement” on the MLFF concept on Nov 17 last year after the Cabinet evaluated the matter.
Under the MLFF project, all exit and entry points on highways will be converted into barrier-free lanes to reduce congestion and ease traffic flow.
Salim, a former Malaysian Bar president, said a caretaker government should only implement existing policies or contracts based on approved financial allocations before Parliament is dissolved.
“It should not abdicate its role as a trustee in protecting the country’s interests during the interim period. There is a strong need for clear guidelines on the responsibilities and role of a caretaker government,” he said.
Economist Edmund Terence Gomez said NGOs have been calling for a separate law to clearly delineate what a caretaker government can or cannot do, adding that most democracies have laws relating to this.
“On this project, if it had been allowed for in the budget passed before dissolution (of Parliament), this may be permissible. Once a contract has been awarded by any previous government, it will be difficult for the new one to revoke it.
“However, the conditions of the contract can be re-negotiated, as in the case of the East Coast Rail Link (ECRL) project,” he said.
In 2016, a framework finance deal and construction agreement for the ECRL valued at US$52 billion (RM242.9 billion) was signed by the government and state-owned China Communications Construction Company Ltd.
Upon the change of government after the 2018 general election, the newly elected Pakatan Harapan government initially decided to cancel the project, citing high cost as the main factor.
However, the deal was renegotiated and instead of being cancelled, the ECRL route was realigned with major changes.