How to spend RM600 million in 6 weeks
Malaysiakini.com
Nov 28, 2006
Andrew Ong

Each parliamentary constituency has been given a year-end 'bonus' of RM3 million. Only two rules apply - they need to spend it in six weeks and the money is only for bumiputera contractors.

These Class-F contractors have been issued with guidelines on how they can spend the additional RM600 million allocated under the Ninth Malaysia Plan in a rather short period - six weeks.

On Nov 13, Prime Minister Abdullah Ahmad Badawi announced that the additional RM600 million was to top up the RM1.5 billion disbursed for rural development, which he claimed had already ran dry.

A three-page document - ‘Guidelines for Implementation Programme of Rural Projects 2006 Concept Paper’ - was released soon after the announcement, prepared by the Public Works Department (JKR) Contract and Material Surveying Division.

"The Works Department has been tasked with ensuring the implementation of the programme which must be undertaken and completed in 2006,” read the document.

Sources claimed that the guidelines was distributed to a number of contractors after the premier’s announcement.

According to the document, it was estimated that RM3 million would be distributed to each parliamentary constituency except for those in Sarawak. This means that 191 constituencies will benefit from the year-end 'bonus'.

The projects must be worth no more than RM200,000 and be completed by the end of this year, stated the document.

No contractor can take up more than one project under this programme. Should all RM600 million be spent, each parliamentary constituency would see at least 15 contractors being hired bringing the total to around 3,000 contractors nationwide.

Payment in January

The document stated that JKR district engineers and district officers must first identify and decide on the small projects and minor renovation works to be undertaken.

Among the projects that can be performed, said the document, are the upgrading roads, building new roads, renovating or painting government buildings which include schools and mosques, building and fixing drains, pipe installations and electrical works.

Successful bumiputera contractors must start work within three days after being awarded the project. They can expect payment by the end of January 2007 after the project is completed.

On Monday, DAP NGO bureau chief Ronnie Liu lodged a police report alleging that public funds were being used to finance the programme which would inadvertently fall into the hands of Umno divisional leaders.

He claimed that the spending spree was neither approved by Parliament or the cabinet. Instead, he said the funds came from a party decision, aimed at bolstering support for the fragile Umno leadership.

Abdullah made the RM600 million fund announcement on the eve of the annual Umno general assembly early this month.

The crux of Liu's argument was a letter - dated on the same day of the annoucement - by Deputy Works Minister Mohd Zin Mohamed informing JKR of the RM600 million fund and instructing the department to expedite the programme.

Since Sarawak is left out, Liu said this only leaves 191 parliamentary constituencies which tallies with the number of Umno divisions in the country.

The majority of Umno division leaders "automatically qualify" for Class-F contractor licences, which are exclusively for bumiputeras. It is an open secret that party office bearers are given priority for the Class-F licences.

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