PETALING JAYA: Overseas travel costs incurred by civil servants for procurement-related matters can no longer be paid by private companies, according to a circular by the Treasury Department dated Dec 21.
The department said in the circular the cost must now be predetermined and included in the contract with the private company that has successfully made a tender.
It also said the practice of using annual allocations for the operations expenditure of agencies for overseas travel must be stopped.
Deputy Finance Minister Steven Sim (pic) said the circular was to update existing government policies on the matter.
"This is also to streamline the existing policy of not allowing procurement-related travel to be borne by private contractors," said Sim when contacted.
According to the circular, among the overseas assignments are factory assessments, pre-delivery inspections, project monitoring reports, transfer of titles, training and executive reporting tests.
The circular also said overseas visits are categorised into two groups, namely assignments before tender invitation and assignments after tender invitation.
"The programme management observation programme is for verifying the status of the product, supervision and discussions on issues related to the project between the contractor and the agency.
"The programme must be for ongoing jobs and must be stipulated in the contract," read the circular.
The Treasury also said there must not be more than three officers representing the government, and one must be an officer involved in procurement and at least one technical officer.
"This is not applicable for training assignments that will be set according to contract terms," it read.
According to the circular, companies must also determine if the said procurement will involve training visits overseas.
"If the procurement involves overseas training and visits, the agency has to state as such in the tender document and clearly state the estimated cost.
"If the tender does not state the cost of visits and training, the agency will not be allowed to make any training and visits regarding the said procurement," it read.
The Treasury also said the practice of accepting training and visits funded by contracts is not allowed.
"Disciplinary action can be taken against government officers. Contractors and suppliers offering overseas training and visits can be blacklisted and not be considered for other procurement (contracts)," added the Treasury.
