The Institute for Democracy and Economic Affairs (Ideas) has highlighted the need to address flaws in Malaysia’s procurement system and increase disclosures of direct negotiations. Alissa Rode, the manager of Ideas’ Public Finance Unit, stated that the current mechanism only reveals the winning bidder and costs, which is insufficient for effective accountability. This statement follows the recent announcement of institutional reforms by the Special Cabinet Committee on National Governance on September 14.
Rode further emphasized the importance of disclosing changes or modifications that occur throughout the contract’s lifespan to provide better checks and balances. Additionally, if direct or competitive negotiation is necessary, it should be publicly disclosed and justified before awarding a contract. She also stressed the need for adequate oversight of sensitive defense contracts through mandatory reporting to a Parliamentary Special Select Committee, even considering the requirement of secrecy.
Ideas welcomed the government’s commitment to review the existing legal framework of statutory bodies’ subsidiaries to align them with principles of good governance. The organization recommends incorporating best practices derived from the OECD Guidelines on Corporate Governance of State-Owned Enterprises. Rode asserted that observing high standards of transparency and conducting a transparent and professional appointment process are essential aspects that should be adhered to by statutory bodies. Moreover, she highlighted the need for higher standards of public disclosure, compliance, and oversight for statutory bodies.
Referring to data from Pantau Kuasa, Rode mentioned that there were 238 political appointments across 72 federal statutory bodies under the previous administration, excluding political appointments in government-linked companies (GLCs). She emphasized that the proposed reforms would only be effective if the right to information is guaranteed. These reforms aim to minimize potential abuses, conflicts of interest, risks of wastage, and inefficient operations in companies that serve the public interest.
Rode emphasized the significance of enacting a Freedom of Information (FOI) Act, stating that citizens can scrutinize government actions, including how public funds are spent, only with such an Act. Additionally, she highlighted the importance of amending the Official Secrets Act (OSA) for better access to information and the overall health of democracy in Malaysia. Rode expressed hope that with the FOI Act in place and a less restrictive OSA, open and transparent governance would become the norm rather than the exception.
Ideas called for a public consultation on the actual wording of the reform Bills before they are presented.
Credit: The Star : News Feed
