Malaysia to terminate corrupt contractors

Contractors bidding for Malaysian Mass Rapid Transit (MRT) projects will be answerable to the Malaysian Anti-Corruption Commission (MACC). A new ‘Integrity Pact’ agreement was presented yesterday to contractors at the MRT pre-tender briefing. It warned that companies could be de-registered or have their tenders terminated.

State-owned infrastructure client Prasarana said that MACC’s presence at the briefing was the first time in history such steps had been taken against corruption. Encik Abdul Malik Azman, Prasarana head of MRT procurement said that contractors would be required to sign the Integrity Pact upon submission of tender applications, then sign again with Prasarana following the contract award.

“Both Prasarana and the contractors must adhere to conditions set upon by the Integrity Pact,” said Datuk Hajah Sutinah Sutan, MACC deputy chief commissioner, prevention. “Be warned that Prasarana is firmly committed to the IP and will report to us at MACC if there are any attempts of bribery by any of the contractors.”

She added that the construction industry has been one of the biggest culprits in the fight against bribery and announced that corruption had been made a criminal offence.

“It’s also an offence for contractors to pay out their rivaling contractors to withdraw their bids to win contracts. Offenders could fail jail sentences up to 10 years; or be fined not less than five times value of their bribe; or fined MYR 10,000 (USD 3,357), whichever is higher; or both.”

The Malaysian Government said it is still evaluating contractor pre qualifications for underground works. A decision was expected by September as T&TI went to press.