KUALA LUMPUR – Putrajaya must review its contract with its vehicle-fleet contractor, Spanco, now that the company’s chairman is facing criminal charges for attempts to defraud the government, a lawmaker said.
Kepong MP Lim Lip Eng said the government must also explain how it would ensure Spanco fulfils its contract obligations, as well as come clean on the value of its concession agreement and expiry date.
“I am not entirely satisfied with the government’s response. 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?” Lim, of DAP, asked in a statement today.
“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 chairman Tan Sri Robert Tan was charged with dishonestly inducing the Finance Ministry in 2019 into awarding a fleet supply, repair, maintenance and management contract to Spanco Sdn Bhd.
Tan, 83, claimed trial to tricking the ministry into awarding the tender worth RM3.9 billion by claiming that at least 30% of Spanco’s shareholders were Bumiputera.
Lim, who has raised questions about the contract in Parliament, said he was not satisfied with the ministry’s parliamentary written reply last month confirming the contract with Spanco was still ongoing despite investigations into allegations of fraud.
“Isn’t it ironic that a multi-billion ringgit government contract was awarded to a company embroiled in an allegation of attempting to defraud the government? And if not, what should we call it?” the government backbencher asked.
During investigations into the deal in January, the Malaysian Anti-Corruption Commission raided the residence of a “Tan Sri” businessman and also froze bank accounts holding tens of millions of ringgit belonging to the individual.
Prime Minister Datuk Seri Anwar Ibrahim in February said the Spanco deal was “detrimental” to the nation.
The company was first awarded the deal to manage government vehicles in the 1990s and has had its contract renewed, until its last expiry in 2019, when the Pakatan Harapan (PH) government held an open tender.
The PH administration did not manage to name the new concessionaire as the government changed the following year.
Last July, however, Berjaya Group founder Tan Sri Vincent Tan sued the government and Spanco, alleging that a consortium he set up with the Naza group had been picked to manage the fleet concession through a letter of intent issued in 2018, and that this was unfairly terminated after the change of government in 2020. – April 12, 2024