MoF sets up Task Force. Remember my posting late last month about how the national housing board, SPNB, was said to have run out of money [Trouble bru-ing at SPNB? Oct 27] and then, just a couple of day later, the board said it was going to pay the RM500 owing to those poor 34 contractors [SPNB will pay Oct 30, The Malay Mail]?
Well, there was supposed to be a press conference at the SPNB headquarters at 2pm yesterday. We were very keen to hear what the SPNB wanted to report to the Press but the press conference was called off.
I'm not sure if the press conference was postponed because of what the latest development. This is what I heard: the Ministry of Finance has set up a special task force to investigate the RM500 million scandal/fiasco/claims.
Members of the task force will be interested to find answers to the following questions:
1. Why did SPNB go on dishing out contracts even when the property market was down?
2. Why didn'tthe board renegotiate downwards contracts when prices of materials were down?
3. Were the 34 contractors given 34 project worth between RM10 mil and RM15 mil each through a dodgy tender plan?
4. Is there need to review the tender process?
The SPNB issue was highlighted after Defence Minister Zahid Hamidi, who used to head the SPNB, alleged corrupt practices at the national housing board here. This blog later discovered about the RM500 mil (SPNB said it's less than RM300 mil). It was great news when SPNB said it was going to pay up BUT that, I think, would be too easy. The Government MUST investigate. It needs to STOP the leakage. Heads must roll.
Otherwise, this will just happen again.