Selangor waste management contract went the state's three ruling parties on 40-30-30 quota

S Pathmawathy | Malaysiakini

The Selangor government has decided to probe the awards of waste management contracts in the wake of allegations that these went to the state’s three ruling parties based on a 40-30-30 quota. MCPX Menteri Besar Khalid Ibrahim (left) said an audit committee will be set up to work with solid waste management company Alam Flora Sdn Bhd to ensure that its contracts are awarded to “genuine operators” and not party-linked brokers. The controversy surfaced last week when Petaling Jaya councillor A Thiruvenggadam revealed details of “dubious dealings” between the Pakatan Rakyat-run state government and Alam Flora - the company which has been appointed to manage solid waste in Selangor. According to Thiruvenggadam, the Selangor government had apparently issued a directive to Alam Flora instructing it to provide 70 percent of its contracts to government-friendly companies for the collection and removal of rubbish. The councillor said the contracts had been awarded to companies linked to Selangor’s three ruling parties - 40 percent to PKR, 30 percent to PAS and 30 percent to DAP - as a means to fund their divisions and branches. It is believed that in return for such contracts, the companies would generously donate money to fund local party activities. Thiruvenggadam (right) said that such a system of awarding contracts to ruling parties was originally practised by the previous BN state government but this was however adopted by the new Pakatan government. Contracts given to party-linked brokers Although the existence of such a quota system has been repeatedly denied by Pakatan leaders, they have nevertheless argued that there was 'no harm' in politicians providing recommendations to Alam Flora regarding the contracts. Thiruvenggadam told Malaysiakini that the existence of the quota system contradicts what Pakatan leaders have professed on taking power from BN. “If the recommendations are successful, the contractors would share their profits with the politician who makes these recommendations,” revealed Thiruvenggadam. Under pressure from the controversy, Khalid today said that those companies which took a cut as brokers would have their contracts immediately terminated. “They (audit committee) will be conducting ground checks and inspect the value of the services provided... companies that are found to be brokers will have their contracts withdrawn immediately and these cases will be reported to the relevant authorities,” said Khalid in a press statement. “The state government hopes that the formation of the committee will curb the unhealthy practice of awarding contracts to brokers instead of genuine operators. “This practice was rampant under the previous state government and the Pakatan Rakyat government in Selangor has no intention to continue such unethical trend,” he stated. Khalid stressed that the measure was being implemented to ensure the people of Selangor “will be provided value-for-money services by those (who are) awarded contracts, irrespective of what their political affiliations, race or background may be”. The MB’s statement also clarified that the state is in the midst of researching for a more transparent and accountable tender system for future waste management contracts. A slippery slope to cronyism Meanwhile, DAP parliamentarian Tony Pua has lashed out at Pakatan leaders arguing that politicians should not be involved in 'recommending' contractors. Pua (right), who is also the Petaling Jaya Utara MP, conceded that such a mechanism “poses a serious credibility threats to the Pakatan government” which would eventually lead corrupt practices. “The Selangor state exco must immediately investigate the veracity of these claims... we would like to call upon the executive councillor for infrastructure and public amenities, Dr Hassan Mohd Ali, who is in charge of Alam Flora waste management services, to confirm or deny the allegations,” said Tony in a statement. However, despite numerous attempts, Malaysiakini has been unsuccessful in reaching Hassan for his comments on the allegations. Pua warned that if such a practice was implemented, it would be detrimental to the state's image as a government that “epitomises transparency and good governance”. “The allegations, if true, will put us on a slippery slope to become a government which condones patronage and cronyism, (making us) no different from Barisan Nasional. “If the allegations are however found to be false or misguided, then Thiruvenggadam must apologise for his allegations,” said Pua. Emulate DAP-led Penang government Moreover, Pua stressed that DAP has a policy of strongly rejecting patronage politics where politicians call the shots in deciding the contractors for public service contracts. “We are firm in our belief that these contracts must be tendered to all qualified parties in an open, transparent and competitive manner. Only then will the rakyat receive the best quality services at the lowest possible prices,” said Pua. “The DAP-led Pakatan government in Penang has taken great pains to ensure that politicians are not put in a position to indulge in patronage politics which promotes corruption and nepotism... this serves to ensure that our policy of competency, accountability and transparency (CAT) is not only preached, but practised,” he added. Pua urged the Selangor government to clear the air of lingering suspicions on the manner the contracts are awarded. He suggested the state to implement a competitive tender, even if it is limited to a certain class of contractors, to ensure that corruption and cronyism will not take root under the Pakatan government. “Political parties have no position, business or role in putting forward names of preferred contractors for the purposes of municipal council contracts,” he reiterated.