Companies appointed for projects sold the contracts to others, says Fahmi


PUTRAJAYA: Certain companies tasked with developing and upgrading Internet infrastructure sold these government projects to other parties, it has been revealed.

Describing it as misconduct, Communications Minister Fahmi Fadzil said companies or contractors appointed by the ministry were required to execute and complete the projects within the stipulated period.

“The issue is that several companies, after being awarded contracts, failed to execute the projects. When this occurred, we issued the sternest of warnings.

“In fact, some of the companies awarded these projects then admitted to selling them to other firms,” he said after the ministry’s monthly assembly yesterday.

Fahmi said he was surprised at how the approval process for the projects were handled.

“Regrettably, many of these decisions were made prior to my appointment, and before the deputy minister and secretary-general joined the ministry.

“We are uncertain how some of these decisions were reached. Nevertheless, we have instructed the companies to expedite the process. Should they fail, legal action can be taken.

“For now, I am leaving it to the secretary-general to review and make improvements in the execution of these projects,” he said.

Asked if the ministry would consider blacklisting the companies involved, Fahmi said this was among the options being considered.

Fahmi said firms engaged to undertake such projects must demonstrate their full capability to execute and complete them in order to prevent wastage and the mismanagement of public funds.

“In the past, I observed that substantial contracts were awarded to a small number of companies. This not only compromises integrity but also hinders effective execution.

“When too many projects are entrusted to a single company, it becomes evident that they cannot meet the required deadlines.

“For example, some projects meant for completion by December 2022 remain unfinished. How were these companies selected in the first place?” he added.

On a separate matter, the minister said issues surrounding the memorandum of understanding (MOU) on allocations for opposition MPs could have been resolved earlier if it was not dragged too long, adding that the unity government had been reaching out to the other side since March 2023.

He said the Opposition bloc had refused to attend regular discussions with the government.

“We sent so many invitations, but they were never reciprocated. If we had the discussions every week from the beginning, this issue would have already been resolved by now,” he said, adding that it was important for both parties to continue negotiations.

On Sept 15, Opposition leader Datuk Seri Hamzah Zainudin said Perikatan Nasional unanimously rejected the draft MOU because it appeared to be in conflict with the Federal Constitution, particularly its potential impact on Malay and bumiputra special rights.

He also said the MOU contradicted cultural, moral and religious principles, could lead to abuse of power, and seemingly curtailed democratic freedoms.

On Wednesday, Perikatan chief whip Datuk Seri Takiyuddin Hassan called on the government to prepare a new MOU draft and set up a special committee to discuss it.

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