Salam and dear all,
Furthering her effort to combat corruption in public procurement, Malaysia has introduced what is known as an "Integrity pact". The pact, to be signed by all bidders and the authority responsible for calling tender/a contract, aims to:
- Uphold transparency and accountability, and
- Ensure excellent work ethics and good governance.
The "Integrity Pact", introduced by the Port Klang Authority, a body under the Ministry of Transport; requires among others that bidders must not collude with each others, and they must report all commissions or expenses paid to anyone in relation to a tender or in a contract.
An ongoing initiative to combat corruption is a training program entitled "Integrity for Contractors" conducted by the CIDB. The training program, made compulsory to all firms registered with CIDB since 2007, reiterates the importance of integrity in public procurement and also includes aspects such as goverment procurement policies on integrity, work ethicts, etc. (http://www.cidb.gov.my).
Here goes the full story on the "Integrity Pact", as it appeared in The Star Online, 20th March 2010:
Saturday March 20, 2010
PKA draws up anti-graft pact in its contracts
By DHARMENDER SINGH
PKA now requires contract bidders to sign integrity pact
PUTRAJAYA: Bidders for Port Klang Authority (PKA) contracts will have to sign an integrity pact with the authority, undertaking not to participate in activities linked to the payment, offering, demanding or accepting of bribes.
Transport Minister Datuk Seri Ong Tee Keat said the pact was proof that he was serious about his pledge to uphold transparency and accountability.
It also showed that the ministry was not in the habit of commissioning studies and appointing consultants just to have the reports lie on shelves gathering dust, he added.
"The integrity pact will ensure excellent work ethics and good governance, while also providing a deterrent against corrupt practices, which lead to blatant excesses like the ones involving the Port Klang Free Zone," Ong said.
"This will not be the end of efforts by me and the ministry to uphold transparency and accountability. "As long as I continue as the Transport Minister, I will walk the talk," he added.
Ong was speaking at a press conference after witnessing the signing of statutory declarations between PKA and Jurutera Perunding Hartkonsult, Business Associates Consulting Sdn Bhd, MSC Management Services Sdn Bhd, Engineering and Environmental Consultant Sdn Bhd, Minconsult Sdn Bhd and Orion Maritime Malaysia Sdn Bhd here yesterday.
The six firms are bidding for tenders for the Jalan Parang upgrading and Port Klang Master Plan study projects being undertaken by the authority.
Transparency International-Malaysia president Datuk Paul Low was also present at the signing.
Meanwhile, PKA chairman Datuk Lee Hwa Beng, who announced the integrity pact, added that it also required bidders to refrain from colluding with competitors to obtain contracts or engaging in such abuses while carrying out the contract.
Bidders also have to disclose all commissions and similar expenses paid by them to anyone in connection with the contract, he added.
"Anyone violating the pact will face stiff penalties, like the termination of contracts, blacklisting, forfeiture of performance bonds and claims for liquidated damages, as well as having the violation reported to the Malaysian Anti-Corruption Commission," said Lee, adding that the authority was also bound by the pact.
"The terms will also be included in the contract signed with the successful company, and will apply throughout the time that work on the project is being carried out," he added.
He said action could also be taken if proof of any corrupt practices surfaced years after work was completed.
Lee said signing the integrity pact would be a requirement for all future PKA contracts, although for now, it would only apply to jobs worth RM1mil or more.
Wassalam.
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