The Ministry of Defence’s practice of awarding substantial contracts by way of direct negotiations lacks transparency and is open to abuse. There appears to be certain companies who are favoured by the Ministry of Defence and Target Resources Sdn Bhd appears to be one of them.
The Defence Ministry has given at least 4 contracts by direct negotiation to Target Resources Sdn Bhd. Besides the ongoing direct negotiations between the Ministry of Defence and Target Resources Sdn Bhd for the sub marine rescue services which was originally proposed to be at RM98.4 million a year for 20 years, the Ministry has awarded at least 4 projects for the total sum in excess of RM1 billion through direct negotiations. The contracts awarded to Target Resources include:
(1) Gemas Phase 3, artillery regiment camp, ammunition depot and married quarters for artillery regiment total cost of RM332 million,
(2) Mempagar Mentakab Ammunition dump, total costs of RM250 million,
(3) Gong Kedak (RMAF) Kelantan Aircraft shelter and ammunition dump,
(4) Ipoh Perak infantry camp.
The Ministry of Defence is proceeding to have direct negotiations with Target Resources Sdn Bhd who does not have the expertise and is also not the local representatives of the international companies which are the experts in this field. We call on the Ministry of Defence to stop direct negotiations and to have an open tender for the sub marine rescue services.
18 March 2009
William Leong Jee Keen
Member of Parliament Selayang