13 June 2018 - According to The Star newspaper, Details of high-ranking officials and companies linked to politicians allegedly involved in controlling billions of ringgit worth of medical supply to the Government have emerged. Another suspected Multi-billion monopoly contract award probe goes to road maintenance industry.

Monopoly Multi-billion contracts?

The PH intelligence task force were told there are more politically linked cronyism business arrangements yet to be exposed. Protasco Bhd is among the Multi-billiion monopoly suspected raking in billions of Ringgit worth of road maintenance contracts with unusual cost mark up and paid by the Government using money belongs to people of Malaysia.

Insider information from within Protasco Bhd and JKR (Jabatan Kerja Raya Malaysia), through Ikram and Roadcare, the Federal contracts were awarded on 4 April 2018, or 1 month before 14th General Election.

On 5 April 2018, Protasco announced Roadcare (M) Sdn Bhd has entered into a concession agreement with the Federal Government to extend a road maintenance contract in four states. The company said the concession agreement covers the maintenance of federal roads in the states of Selangor, Pahang, Terengganu and Kelantan.The concession duration commenced on Feb 17 and will expire on Feb 17, 2026. The contract was described by Protasco Bhd management to rake in RM2-3 billion during the period.

Corrupted Tender & Award Process?

In documents handed over to the Prime Minister office and leaked summary to main media, the document revealed bid rigging of open tender process, thus enabling the monopoly of road maintenance contracts.  Protasco Bhd was unusually awarded 8 year of federal road concessions on 4 April 2018, and exacly 1 month late on 5 May 2018 celebrated the success and greatness of former Prime Minister Najib Razak led PPA1M civil servant hausing project which is meant to be pre-election campaign by Protasco Bhd.

 Protasco Bhd surprise 1st quarter result on March 2018 confirming the missing cash flow of RM66 million from its balance sheet coincidentally a month before the contract award becomes focus of relevant authorities investigation.

From 2013 to 2018, the total road maintenance contracts awarded by JKR and states agecies which amounted close to RM3bil were controlled by government officers and politician from old regime linked to Protasco Bhd.

The document said that there were many established contractors, construction companies, and bumiputras in Malaysia but the contracts were only appointed to a handful, count Protasco Bhd being unusually "fortunate" to monopoly the cost.

Anti-Corruption & Punitive Action

Multi-billion ringgit expose of medicine monopoly involving politicians, senior officials
 

Read more at https://www.thestar.com.my/news/nation/2018/06/13/multi-billion-ringgit-expose-of-medicine-monopoly-involving-politicians-senior-officials/

PETALING JAYA: Details of high-ranking officials and companies linked to politicians allegedly involved in controlling billions of ringgit worth of medical supply to the Government have emerged.

In a 12-page document emailed to the Health Minister Dr Dzulkefly Ahmad and forwarded to a few parties including The Star, the document revealed the bid rigging of open tender process, thus enabling the monopoly of medical supply to the Health Ministry.

From 2013 to 2016, the total medicine tender awards by the Health Ministry which amounted to RM3.7bil were controlled by six main tendering agents.

It claimed that collectively, the top three tendering agents were awarded RM2.8bil or 75.9% of the RM3.7bil; top six were awarded RM3.4bil or 90.93% of the RM3.7bil of the total tender contracts value.

The document also pointed out that for the same period, half of the tenders had only one single participant (tendering agent) and represented RM1.8bil of the RM3.7bil total contracts value.

The document said that there were many established distributors, resellers and bumiputra tendering agents in Malaysia but the contracts were only appointed to a handful.

"More importantly, the top tendering agents are actually owned by high ranking officials and/or politicians, or relatives of high ranking officials and/or politicians.

"International pharmaceutical companies collude with official-owned tendering agents to bid rig," it said.

According to the document, these drugs supplied are the open tender for medicine not covered under the Approved Product Purchase List (Pharmaniaga concession) which international pharmaceutical companies could participate.

The Ministry puts out a procurement tender and the companies will engage bumiputra tendering agents to bid for the tender according to the tender specifications and the agents are paid a percentage of commission based on every tender won, it said.

It claimed that these tendering agents act as intermediaries and earn a clean profit since they do not handle marketing, logistics or distribution.

"It is no coincidence that more than 70 pharmaceutical companies all only use the same few official-owned tendering agents," it said, accompanied by proofs of the allegations.

By refusing to supply or deal with other resellers and tendering agents, international pharmaceutical companies grant official-owned tendering agents a monopoly and thus securing an automatic win in a tender, it said.

"From at least 2011 to the present, international pharmaceutical companies have been paying bribes to high ranking officials/politicians to assist in obtaining or retaining business in Malaysia in violation of the United States Foreign Corrupt Practices Act (FCPA).

"These corrupt payments are concealed as commission payments to the official-owned tendering agents," said the whistleblower.

When contacted, Health Minister Dr Dzulkefly Ahmad said that he will look into it and peruse it properly.

"If there are substantive things, we will pursue it," he said.