The Center to Combat Corruption and Cronyism (C4) said this in reference to the transport project awarded by the Selangor government to a company that is linked to a federal minister’s husband.
Questions arose on the possibility of preferential treatment following revelations that Asia Mobiliti was one of two companies the state government had given the project to without going through an open tender. The company’s CEO, M Ramachandran is married to youth and sports minister Hannah Yeoh.
In a statement, C4 said it was “dismayed” with Malaysian Anti-Corruption Commission (MACC) chief commissioner Azam Baki for stating that there was “no issue” with the appointment as Yeoh’s ministry had no direct ties to the Selangor government.
C4 said that regardless of whether the youth and sports ministry is involved, the fact remains that Yeoh holds a position of prominence within DAP – and by extension, Pakatan Harapan (PH).
“The simple fact that the same coalition (PH) forms the Selangor government is enough to raise valid suspicions around the propriety of the appointment,” it said.
“Therefore, while Azam argues that formal bureaucratic channels may not be directly linked in this matter, other political connections exist.
“These connections are enough to raise serious questions of conflict of interest, which remain unaddressed despite its grave implications for good governance.
“A clearly defined scope must be established to clarify what exactly constitutes a conflict of interest, with stipulations that restrict or outright prohibit actors with contentious relations to the dealings.
“There must then be full disclosure provided to the public for any proceedings flagged as having any conflict, allowing for better transparency, and easing future investigations.”
Last Friday, Selangor investment, trade and mobility committee chairman Ng Sze Han defended the deal and said the two companies – Asia Mobiliti and Badanbas Coach – were selected to run the demand-responsive transit (DRT) service after a presentation to the state transport committee and based on their experience in rolling out their proof of concept.
Asia Mobiliti has also defended its involvement in the DRT service, saying only two companies in the country are qualified to provide the service it gives. It also claimed that an open tender in the appointment process in the “highly specialised new service” would have created a monopoly in the state.
In response, C4 called for the Selangor government to disclose the complete details of Asia Mobiliti’s appointment and commit to making all procurement-related information publicly accessible.
C4 said it “disagrees vehemently” with Asia Mobiliti’s argument, stating that by its very nature, the open tender process encourages competition and openness in the procurement process.
The NGO added that the open tender process also forms part of the United Nations Commission on International Trade Law Model Law for public procurement.
“Despite mentioning approval from the Land Public Transport Agency (Apad ) in appointing Asia Mobiliti for the project, Ng has, thus far, failed to furnish any details pertaining to the list of criteria relevant to this approval,” C4 said.
“Why was no criteria disclosed publicly, especially in a situation as contentious as this? The opaqueness of the appointment procedure has only allowed aspersions to be cast regarding this matter.
“Ultimately, the persistence of questions surrounding the awarding of government contracts – especially due to a lack of transparency from the (Selangor) government – will further dampen the credibility of the Madani government.”