Government’s agreement with Spanco detrimental to Malaysia, thorough investigation needed – PM Anwar

Government’s agreement with Spanco detrimental to Malaysia, thorough investigation needed – PM Anwar

Prime minster Datuk Seri Anwar Ibrahim has said the government is committed to combatting corruption amid the fleet project tender scandal involving Spanco for the supply, repair and maintenance of government vehicles.

In a report by NST, Anwar said thorough investigations will be conducted and decisive actions by enforcers will be taken against all parties involved in the case. He revealed that he had been vigilant about this issue during his tenure as finance minister during Tun Dr Mahathir’s administration.

“It seemed as though everyone remained silent, indifferent to the enforcement actions being undertaken. Some may label this an old political vendetta, but everyone was involved in utilising Spanco’s facilities. I have consistently voiced concerns about this issue since my time as the finance minister. I recognised irregularities in that contract, which proved detrimental to the country and disadvantaged civil servants,” said Anwar.

“However, there needed to be more urgency, and no concrete actions were taken, revealing a deficiency in political determination. “This is not the case now; I commend the inland revenue board (LHDN) and Malaysian Anti-Corruption Commission (MACC) for their steadfast commitment to fulfilling their duties and investigating those involved,” he added.

Spanco was established in 1988 and was given a 25-year concession agreement in 1993 to provide and lease vehicles with full maintenance services for the government. At the end of December 2018, the agreement expired and the government called for tenders in February 2019 for a contract to supply, maintain and manage its fleet of official cars for the next 15 years.

Government’s agreement with Spanco detrimental to Malaysia, thorough investigation needed – PM Anwar

In the interim period, Spanco was given two extensions of six months each in 2019 to continue managing the fleet until the end of that year, with a further third extension reportedly given until June 2020.

According to the Berjaya group founder Tan Sri Vincent Tan, the Naza-Berjaya consortium was picked by the government to handle the fleet concession by the previous administration through a letter of intent (LoI) that was issued in 2019. A year later, the ministry of finance announced it has chosen a new concessionaire to manage the government’s vehicle fleet but did not name the company – it was widely believed it was the Naza-Berjaya consortium that won the tender.

In July 2023, Tan said the Naza-Berjaya consortium had its LoI terminated unfairly before the accrual award was set to be announced. A lawsuit was filed against the finance ministry and Spanco, with Tan claiming that the contract was awarded to Spanco despite the consortium winning the bid with an offer that is RM700 million less than Spanco’s. He also called for an MACC investigation on the issue.

In January this year, the MACC raided a residence of a businessman holding the title Tan Sri as part of an investigation into corruption allegations related to the procurement and management of the government’s fleet of vehicles valued at RM4.5 billion.

MACC chief commissioner Tan Sri Azam Baki announced earlier this week that individuals involved in the decisions to award contracts for the supply and management of government vehicles to Spanco will be summoned to assist in the investigation, including a former prime minister and finance minister.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • FudgeMeSideways on Feb 09, 2024 at 12:34 pm

    So is Boustead with the LCS

    Like or Dislike: Thumb up 7 Thumb down 0
    • Kedahan on Feb 10, 2024 at 10:22 am

      Say NO to PN

      Like or Dislike: Thumb up 6 Thumb down 2
    • Anwarkor on Feb 11, 2024 at 11:02 am

      Give all Menteris n Gove servants fixed car allowance.They maintain their own repairs.Whether they buy Saga or Rolls Royce,up to them..For Polis n Bombs,set up new company to maintain them..

      Like or Dislike: Thumb up 5 Thumb down 0
  • Kea Was on Feb 09, 2024 at 1:03 pm

    So LGE is equally guilty to extend Spanco deal from 2019 2x but probably we know who is the main suspect however nothing beats the next PM who says want to save Malaysia by rewarding this company Extra RM700,000,000.00 of our tax payers money guess saving Malaysia is what that means through some deals to some individuals.

    Like or Dislike: Thumb up 7 Thumb down 1
  • Janji dicapati on Feb 09, 2024 at 2:18 pm

    Wayang

    Like or Dislike: Thumb up 17 Thumb down 2
  • Madanon on Feb 09, 2024 at 2:26 pm

    Diskaun tempoh penjara & denda tak detrimental ke?

    Like or Dislike: Thumb up 15 Thumb down 0
    • Penjara 7 tahun, denda 10 juta & sebat 2x on Feb 11, 2024 at 1:54 pm

      47 kes DNAA tak detrimental ke? Sorang lg tu ketua menteri terowong ape cer? Cakap nak perang rasuah. Hampeh!

      Like or Dislike: Thumb up 11 Thumb down 1
    • Janji dicapati on Feb 17, 2024 at 10:55 am

      Detrimental to his government

      Like or Dislike: Thumb up 0 Thumb down 0
  • Elegance Boy on Feb 09, 2024 at 3:45 pm

    terminate spanco.. then lantik some other one.. same MO different person.. putang inaa

    Like or Dislike: Thumb up 7 Thumb down 2
  • Come on, life are getting more difficult lah, rm is weakening.. i see that nothing effective are being done.

    Like or Dislike: Thumb up 3 Thumb down 1
  • Bossku wants full pardon! on Feb 10, 2024 at 10:14 am

    At least so far readers here seem to agree, it doesn’t matter which R, same result. Had this been Vincent Tan who won the contract, tax payers will still pay over the top money to maintain some Potong crap. This is BolehLand afterall..

    Like or Dislike: Thumb up 3 Thumb down 1
    • Starbucks Machiatto craze by ajibkor on Feb 11, 2024 at 12:22 pm

      If cronyism is not contained,Vincent Tan or Lee Kim Yew also no difference.Life goes on,only thing some dudes know how to wipe their mouth cleaner after a heavy meal.

      Like or Dislike: Thumb up 1 Thumb down 1
      • Bossku, corrupt! on Feb 12, 2024 at 6:55 pm

        Malaysia might continue to be one of the most corrupt countries in the world. It really didn’t matter which party is the garmen. Just look around! See any difference?

        Like or Dislike: Thumb up 0 Thumb down 0
        • You obviously never heard India and Thailand,cevery need to pay rasuah there

          Like or Dislike: Thumb up 0 Thumb down 0
 

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