Government / Public Policy

Private companies not allowed to pay for civil servants' trips abroad

PUTRAJAYA: The Treasury has determined that the cost of public servants' overseas trips related to government procurement will no longer be funded by private companies.

A new circular on Overseas Assignments related to Government Procurement PK 2.14 which came into effect last Tuesday, has set the cost to be fully funded through contractual obligations.

The circular stipulates that funding is limited to pre-acceptance inspection (PDI), Factory Assessment Test (UPK), Project Monitoring Report (PMR), Executive Attachment Meeting (ERM), Final Acceptance Test (FAT), Transfer of Title (TOT); and training.

It adds that the requirements and costs of overseas assignment financing are clearly stated in the offer and procurement contract.

"The cost should be based on the official qualifications according to the officer's grade including the number of officers involved, food and drink allowances, transport costs, accommodation, other allowances, duration of visit or training, tentative date and frequency of visit or training.

"The number of officers involved in the assignment should also be limited to what is necessary and related to the technical expertise of the procurement, stated the circular.

"The number of government representatives should not be more than three officers consisting of one officer involved in procurement and at least one technical officer, it adds.

The circular also states that the value of procurement for assignments abroad after the invitation to tender must exceed RM10 million except for the procurement of animals.

It also said that the requirements and number of government representatives to conduct assignments abroad must also be clearly stated in the contract document and the cost of financing the assignment is borne by the government.

"The agency must ensure that the company's bid price includes the cost of the assignment for the government representative.

"The duration of the assignment allowed is not more than seven days (not including travel days) except for training programmes that need to be determined based on the terms of the contract.

"If the procurement involves a visit or training abroad, the agency must state in the tender invitation document that the supplier or contractor must state the related cost estimate separately and clearly in the tender offer," the circular stated.

If the tender has been invited without specifying the cost of the visit or training involved, the circular states then the agency is not allowed to make any visit or training related to the procurement.

It also states that the practice of receiving visits or training funded by suppliers or contractors is strictly prohibited and government officials may be subject to disciplinary action, said the circular.

It adds that suppliers or contractors who offer overseas tours or training may be subject to action including being blacklisted and not considered for other procurement.

In a previous circular, the Treasury stated that the funding of overseas travel costs related to government procurement must be fully funded using the annual allocation of Managing Expenses under the respective agencies.

Meanwhile, Deputy Minister of Finance Steven Sim said the move was to create more transparency and accountability in government procurement matters.

"Travel requirements for inspection work, among others, must be specified in advance in the contract and the costs listed.

"The company involved in the contract is not allowed to finance such a trip because only in that way, the assessment by government representatives can be independent," he said.

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