Azam (right) handing over souvenir to Sabah Journalists Association president Datuk Muguntan Vanar, at the Cakna Rasuah SPRM Bersama Media event today.
KOTA KINABALU (April 10): Government procurement will be one of the key focus areas for the Malaysian Anti-Corruption Commission (MACC) in Sabah due to Sabah’s rapid development and increasing business transactions.
The aim is to prevent financial leakage and wastage of public funds.
MACC Chief Commissioner Tan Sri Azam Baki said that this focus also extends to other rapidly developing states with major cities such as Penang, Johor, Sarawak, Selangor and Kuala Lumpur.
“Sabah is one of the fastest-recovering states after the Covid-19 pandemic, especially in the tourism sector. And when we talk about tourism, it naturally connects with government procurement, as it creates many business opportunities,” he said.
“When there are business opportunities, the government will typically invest in infrastructure development and upgrades.”
He added that Sabah is expected to see new hydroelectric projects soon, which will open the door to various business ventures. This is in addition to ongoing developments like the Pan Borneo Highway project and other infrastructure upgrades in the state.
“That’s why the MACC sees government procurement as a critical area of concern — especially in government departments and agencies such as the Department of Lands and Surveys. These are hotspots for potential misuse of funds, misconduct and other irregularities,” he said during the Cakna Rasuah SPRM Bersama Media event at Hyatt Regency Kinabalu on Thursday.
Azam also said that MACC’s focus on procurement issues does not only cover large-scale projects.
According to him, small projects, if mismanaged in large numbers, can also lead to significant national losses.
“In Sabah, we’re also focusing on smaller procurement deals. They may seem minor on the surface, but take for example a single toilet construction project worth RM100,000. If there are 100 such projects, the total value becomes substantial,” he said.
He also pointed out that the MACC will pay closer attention to issues arising at district offices and government agencies dealing with mineral resources and forest products.
“At headquarters, MACC typically investigates large-scale corruption. But for state-level operations, I’ve instructed that both big and small cases be prioritized. For instance, a project valued at less than RM200,000 may seem small, but if multiplied by 100 projects, it becomes a significant issue,” he said.
“Funds that are vulnerable to being misappropriated must be safeguarded. Sabah needs to save money through cost efficiency, because when corruption happens, project costs can rise by 20 to 30 percent.
“According to MACC studies, corruption within procurement processes can inflate costs by up to 30 percent. This is because contractors often have to cover all kinds of corrupt payments, leading to indirect losses for the state government,” he added.
In addition to procurement, Azam noted that MACC is also focusing on enforcement-related issues in Sabah. These include not just the police (PDRM), but also local authorities and agencies involved in smuggling-related matters.
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