Procurement law lacks provisions to regulate defence buys, says C4

Procurement law lacks provisions to regulate defence buys, says C4

The anti-corruption watchdog says the Government Procurement Act should be amended or supplemented with stronger regulations.

The Center to Combat Corruption and Cronyism said the current law was largely ineffective in preventing the army procurement scandal and would unlikely prevent similar instances in the future.
PETALING JAYA:
An anti-graft group says the existing Government Procurement Act (GPA) lacks provisions to regulate defence purchases, following a probe into a former senior military officer linked to an alleged army procurement scandal.

In a statement, the Center to Combat Corruption and Cronyism (C4) said the law, which had been “hastily” passed, lacked provisions that regulate defence procurement.

“The GPA in its current form would have been largely ineffective in preventing the scandal at hand and would likely not prevent similar instances from taking place in the future,” C4 said.

It said legal provisions that criminalise corrupt acts were not sufficient as preventative measures were not substitutes for good governance in defence procurement.

“Transparency, good governance, and regulations were supposedly the ambit of the GPA – it has unfortunately fallen short of that expectation.”

C4 went on to call for the government to address criticisms of the GPA.

The government, it said, should amend or supplement the law with stronger procurement regulations.

Former army chief Hafizuddeain Jantan and his two wives are currently being probed over an alleged army procurement tender cartel.

Hafizuddeain was put on leave following claims of “large cash inflows” into the bank accounts of a senior military officer and his family members. The funds were allegedly transferred from accounts belonging to firms that had obtained military contracts.

This is not the first time C4 has criticised the GPA.

In August, it said the then proposed law provided ministers with “excessive discretion” and “embeds conflicts of interest”.

It also creates a registry that is open to abuse and grants Treasury officials investigative powers which even police officers exercise under stricter safeguards.

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