KUALA LUMPUR: The Malaysian Anti-Corruption Commission said 20 per cent of complaints received between 2022 and July 2024 were on public and private procurement matters.
Malaysian Anti-Corruption Commission deputy chief commissioner (Prevention) Datuk Seri Norazlan Mohd Razali said investigations into public procurement have increased to 66 per cent as of July 20 this year compared with 59 per cent and 60 per cent in 2023 and 2022 respectively, said
Speaking at the 10th National Procurement Conference today, he said 40 per cent of yearly budget was allocated by the government for public expenditures, including development, goods and services, and purchase of asset.
These funds, however, were abused and led to issues involving huge amounts of public procurements occurring and reoccurring in Auditor's General (AG) reports, he said.
Based on the analysis conducted on the AG's reports, Norazlan said top five weaknesses of public procurement include non-compliance to scope, specifications, and terms of contracts; delayed completion/non-completion of project; poor documentation; low quality of products, service, and work; and little or no prior planning.
He said most of the time, the underlying causes of the weaknesses of public procurements were corruption which about 20 per cent of the complaints and reports received by MACC in 2022 to July 20, 2024 were related to procurements in both the public and private sectors.
"Of these, complaints on public procurements constitutes about 67 per cent as compared to private sector in 2022 and increased to 69 per cent in 2023 and to 70 per cent as of July 20,2024," he added.
Norazlan said most corruption offences were concentrated to abuse of power, demanding and/or receiving bribes, and approving claims for work or services not completely done or supplies not completely delivered.
He said these issues caused the funds allocated for public goods and services being drained away through overpriced contracts.
Besides compromised quality of goods and services due to the usage of inferior materials and substandard construction, he said services became unreliable and posing risks to the welfare and safety of the public.
"The negative economic and social costs of corrupt actions, in terms of wasted resources, inefficiency and missed opportunities, are always higher than the benefits that could be obtained through such actions."
"This ultimately reduces public trust in government and erodes the public integrity necessary for advancing public good," Norazlan said.
Although legal and regulatory frameworks are in place, he said better preventive governance measures are needed to ensure transparency and clear accountability in the procurement process.
The process that are currently handled by human, he said, should be done using technology to govern human behaviours to reduce the opportunities for corruption.
"e-Perolehan offers a solution that streamline the procurement process which is a catalyst for innovation, revolutionising procurement practices such as artificial intelligence, blockchain, and cloud computing, resulting in a much efficient procurement processes," he said.
ePerolehan is the government's procurement system developed by Commerce Dot Com Sdn Bhd.
This system is CDC's flagship product, and was launched in 2000. It has since played an important role in revolutionising the government's procurement process, while also driving the country towards a digital economy.
Additionally, Norazlan said the introduction of e-invoicing by Inland Revenue Board (IRB) would also help to eliminate forgery of invoices and other non-genuine business transactions in matters of procurement.
He also emphasised the importance of improving the knowledge of procurement capabilities through training and development, raising ethical standards and anti corruption interventions in procurement.