PUTRAJAYA: The government, in principle, will not engage in direct negotiations for government procurement, as it creates opportunities for the abuse of power, says Prime Minister Datuk Seri Anwar Ibrahim.
Anwar said the practice of direct negotiation in government procurement would be entirely eliminated under his administration.
"In my opinion, this long-standing practice is a form of robbery that significantly increases the potential for the abuse of power. While the Finance Minister might support the principle of direct negotiations, it also provides a broader scope for the other party to set prices.
"This has occurred frequently in the past and has restricted the authority of the technical committee and other entities," he said during his address at the Finance Ministry's monthly assembly held here today.
Finance Minister II, Datuk Seri Amir Hamzah Azizan, was also in attendance.
Anwar, who is also the Finance Minister clarified that negotiations could proceed in cases involving urgent procurement, particularly those related to community needs.
As an example, he referenced the electricity crisis in Labuan, Sabah, which was resolved through direct negotiation procurement facilitated by Petronas.
"I am not implying that there are no exceptions for certain government procurements carried out through direct negotiations.
"For instance, when addressing the urgent electricity supply issue in Labuan, we directed Petronas to execute the Independent Power Producer (IPP).
"This is a pressing requirement, but I cannot dictate which contract Petronas will undertake. Hence, in principle, we are completely halting direct negotiations," he explained.