PUTRAJAYA: The government does not deny the need to have direct negotiation for acquisitions in special cases.
Prime Minister Tun Dr Mahathir Mohamad said direct negotiation would only be allowed for essential purposes, citing acquisitions by the Armed Forces as an example.
“For instance, the Armed Forces wanted to acquire certain equipment from one particular company.
“It may identify the equipment (needed) and that equipment only comes from that one company, then they can have a direct negotiation.
“But, they must state the reason why they want to have a direct negotiation and they have to get the permission of the Finance Ministry.
“Other cases, of course, it is through open tender and limited tender,” he said, after chairing the Special Cabinet Committee on Anti-Corruption (JKKMAR) meeting at Perdana Putra, here, today.
Dr Mahathir denied that the government had awarded a RM450 million project in Kelantan through direct negotiation.
He made it clear that it was a continuation of an existing project, which had been approved by the previous administration.
“Since it went viral, you have seen the note I wrote, that this is a continuation of a project that has been given to this party.
“So what I said there was, if this company is willing to reduce the cost, and if this is a continuation of the previous project... I don’t think that is (a new) direct negotiation,” he said.
A letter allegedly from the Finance Ministry had gone viral on social media, supposedly showing the said project forbuilding a multipurpose federal building in Kota Baru was awarded through direct negotiation.
On Monday, Finance Minister Lim Guan Eng had said he would bring the matter up with Dr Mahathir.
When asked whether Lim had spoken to him about the matter, the prime minister replied: “Yes, we talked about it”.