A DAP MP has called for the government to review its contract with Spanco Sdn Bhd for the procurement and management of the government’s fleet of vehicles amid the ongoing criminal court proceedings against the company chairman.
Kepong MP Lim Lip Eng also expressed scepticism over the Finance Ministry’s written reply to his parliamentary query which confirmed that the contract with Spanco is still ongoing.
In a written parliamentary reply dated March 12, the ministry also said that the government had ensured adherence to procurement procedures and due diligence was done on the contract.
Lim had asked if the contract with Spanco had caused harm to the country and if termination was warranted in the event it was detrimental.
“Forgive my scepticism, but I am now not entirely satisfied with the government’s response,” he said in a statement on Friday (April 12).
“How can the government ensure the fulfilment of obligations under the contract with Spanco after the company’s boss has been accused of cheating the government?
“What is the value of the concession agreement, and when is it set to expire? Was the award of the contract to Spanco approved by the Cabinet?
“I urge the government to conduct a thorough review of the contract with Spanco amidst the ongoing criminal court proceedings against the company’s owner.”
On April 3, Spanco executive director Tan Sri Robert Tan Hua Choon was charged with cheating the government to award his company a contract worth over RM3.9 bil by convincing the Finance Ministry that Spanco has at least 30% Bumiputera shareholding.
Tan, 83, pleaded not guilty after the charge was read before Judge Suzana Hussin at the Kuala Lumpur Sessions Court.
The offence was allegedly committed between Feb 27, 2019, and Feb 29, 2019, at the Finance Ministry’s office in Putrajaya.
Tan was charged under Section 420 of the Penal Code, which provides for up to 10 years in prison, whipping and a fine, upon conviction.
n February, the Malaysian Anti-Corruption Commission (MACC) chief Tan Sri Azam Baki said the crux of the investigation is on the supply and management of the fleet of vehicles contract awarded to Berjaya Group and Naza Corporation Holdings Sdn Bhd in 2019, only to be terminated and then given back to Spanco during the previous government’s administration.
According to NST, Spanco has been handling the government’s fleet for 25 years since 1993.
Meanwhile, The Edge reported that Tan currently owns 24.65% of shares in Spanco, the most shares held by a natural person, followed by Datuk Seri Tan Han Chuan at 14.67%, Datin Tan Ching Ching (9.68%) and Minhat Mion (5%).
Spanco’s biggest shareholder is Jati Rata Sdn Bhd (46%).
MACC raided the tycoon’s home in January for its investigation. – April 12, 2024
