Coronavirus pandemic

KL probes claims of abuse in virus-related equipment purchases

A test kit for Covid-19. Malaysia is investigating the award of contracts for the purchase of Covid-19 test kits, personal protective equipment and face masks.
A test kit for Covid-19. Malaysia is investigating the award of contracts for the purchase of Covid-19 test kits, personal protective equipment and face masks. PHOTO: AGENCE FRANCE-PRESSE

Several companies directly appointed by Malaysia's Health Ministry to supply Covid-19-related equipment are being probed by the Malaysian Anti-Corruption Commission (MACC).

Sources told The Straits Times yesterday that at least five contractors have been summoned by the graftbusters to have their statements recorded in order to facilitate the investigation involving contracts believed to be worth at least RM30 million (S$10 million).

"The MACC will be scrutinising the appointment process of the contractors which was done under the emergency procurement procedures," a source said.

"But the main focus of the investigation is also to determine whether there is abuse of power when awarding these contracts, so the case is likely to be probed under Section 23 of the MACC Act 2009," the source added.

It is believed that the contracts involve the purchase of Covid-19 test kits, personal protective equipment and face masks.

The allegation of a possible shady deal came after former Member of Parliament Wee Choo Kiong claimed last week on Twitter that a company which received the contract had been paid "lots of money upfront" and was not qualified.

The MACC probe is one of the first publicly known involving the two-month-old Perikatan Nasional government. The emergency procurement procedures allow government bodies to directly appoint contractors to carry out works or make purchases without having to bid in an open tender process.

Citing its own source, Malaysia's news site Malaysiakini said one of the companies that was summoned by the MACC is a construction firm which had allegedly acquired a laboratory construction project for the Health Ministry.

"Emergency procurement is not a licence to appoint just any contractor. Contractors chosen must come from those that have the proper licence, credentials and expertise to carry out the works needed," Malaysiakini quoted the source as saying yesterday.

"(Ministries) cannot simply appoint anyone to be a supplier. Most hospital equipment such as ventilators, laboratories and such require expertise to install, commission and carry out maintenance," the source added.

Amid the probe, the Ministry of Health's director-general, Dr Noor Hisham Abdullah, said his ministry is ready to cooperate with the MACC, though he refused to confirm whether the contracts were awarded via direct negotiation.

"The matter should be referred to the MACC, but the ministry will always cooperate (with them) if needed," he said at a press briefing on Covid-19 yesterday.

Without providing any context, Health Minister Dr Adham Baba on Monday issued a press statement saying the ministry is constantly monitoring and ensuring that its personnel practised a high level of integrity.

"The ministry will also support the MACC's efforts to curb corruption and embezzlement. We will continue to work with MACC," he added.

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A version of this article appeared in the print edition of The Straits Times on May 06, 2020, with the headline KL probes claims of abuse in virus-related equipment purchases. Subscribe