Wednesday 25 September 2013

Ubiquitous System for Jabatan Kastam dan Eksais Diraja (Customs) : Corruption, Kickbacks, Collusion and Abuse of Power!



Another typical leak at Treasury

Last week, UMNO President Dato Najib Tun Abdul Razak announced plans for economic empowerment of Bumiputera. [Read again here]

Every other person was complaining of nothing new. One of our concern was no serious effort to address past problems of leakage, inefficiency and sabotage on past empowerment programs. Leakage and inefficiency tend to be blame on government machinery.

Najib's intention to improve delivery is understood and appreciated. Only problem is the PEMANDU outfit. The other choice to PEMANDU is to leave it to the civil servant to independently run government machinery.

True, we have been a strong advocate to abolish PEMANDU and return the role to EPU, but it is not a blanket endorsement for all because had there not been for privatisation, JKR would still not complete the North-South Expressway yet.

The case we like to bring up is a case of leakage involving a recent tender for a Ubiquitous System for Jabatan Kastam dan Eksais Diraja (Customs). The underlying problem is clear and it is ubiquitously morally wrong.

MACC should be alerted because it has corruption, kickbacks, collusion and abuse of power written all over.

When we exposed how policies and procedures was abused by big names being bandied to be associated to Najib in the tender for Accrual Accounting System for Accountant General Office [read here], wonder whether MACC have made a raid on Ministry of Finance.

If not, this Customs tender involved some big names, big money and abuse have been allowed to go on for too bloody long time. It is killing competitiveness, making a mockery of market friendly affirmative action, and any rhetorics along capacity or nation building.

One way to address is to raise level of morality and sense of responsibility. As our late sifu used to say, one cannot operationalise morality but only set policies and procedures.

Customs have an on-going system, doing well since 1992, and can be upgraded, but decided to change it into a system called Ubiquitous system. Not sure the technical meaning but ubiquitous means "present in all places and at all times".

The tender is Pembangunan Projek Sistem U-Customs for jabatan Kastam dan Eksais Diraja Malaysia. Tender date closed on March 11, 2013.
As usual in any IT tender, interested companies would shop around the world for systems solution. Everyone involved could basically know who has been shopping for what. With some effort, one can know how many have approached the most powerful solution Artiquator, the only use in France Bull system, Korean Posco and Microsoft.

Before awarded, the user, Customs would determine which system and technical package meet their requirement and interest them.

They would also ascertain company knowledge and ability to understand the Customs process, have technical experience, and capacity and commitment level. Having a Artiquator system solution but no technical experience in the Customs process is not necessarily an advantage.

There are also issues of financial capability and obviously cheapest tender price

Then all these is passed to Ministry of Finance. Prior to reaching the Tender Committee chaired by  Najib, the papers and documents have to be sent to a committee of Little Napoleans.

The Little Napoleans will would vet through Customs review and make their own recomendation. It would be usually strange for user comment to be far different from the Little Napoleans'.

Usually Najib and the Committee of top level government officers sometimes including MoF II would merely approve as recommended by the Little Napoleans. No story of Rosmah interference through husband or politician making a quick buck.

Members of the Tender Board are:
1. YAB Dato' Sri Mohd Najib Tun Hj Abdul Razak (Chairman)
2.  Tan Sri Irwan Siregar (KSU)
3.  Dato' Mat Noor Nawi (TKSP-Dasar)
4.  Datuk Nozirah Bahari (TKSP-Pengurusan)
5.  Dato' Fauziah Yaacob (TKSP-Sistem & Kawalan)
6.  Dato' Hashimuddin Mohamad (Setiausaha Bahagian Perolehan Kerajaan)

In this tender exercise, Company Coded 1/21 (as per list above) at RM317.8  million had won. In term of pricing, it is numbered 4. While in term of technical, we found out it is numbered 4 with their Microsoft base system.

It is still no issue. The question to ask is is are there companies in a better positioning than number 4?

As far as our source found, there are at least 2 companies with better technical AND pricing position than number 4. But it is not about promoting other companies, but questioning why Company 1/21 got it.

It means a system of policies and procedures is in place but there are leakages or abuse of power or collusion going on from the breakdown of individual morality. These are the pengkhianat bangsa dan negara!

Our source also found that there is Company Coded 10/21 at number 2 technical position (two step higher than number 4) but pricing is number 5.

At number 5, it is RM28 million higher at RM345 million than the winner Company 1/21. If Customs and MoF is willing to spend more for a superior system and chose company 2, it is still acceptable. Heard it was the Artiquator system.

Company 1/21 is a tight financial condition and have too many big projects in hand with tight deadlines. It is not too sure they can deliver as promised in 2 years time. But why was the company given and recommended by these Little Napolean of questionable morality?

Calling calling MACC ...

The Little Napolean is hiding inside a committee for contracts more than RM30 million, below:
1.  Datuk Nozirah Bahari (TKSP Pengurusan and Chairperson)
2. Dato' Noorrizan Shafie (Setiausaha Bahagian Dasar Saraan, Wang Awam & Khidmat Pengurusan)
3. Wan Omar Wan Abdul Ghani (Ketua Seksyen Perolehan Kerajaan)
3. A repreentative from JKR
4. Hj Mohamad Jusoh (Ketua Seksyen Kewangan)
5. Ahmad Zaki Mohamed Rayes (Ketua Penolong Setiausaha)

The one processing the papers are Haji Mohamed Jusoh and Ahmad Zaki. Haji Mohamed heads the secretariat and Ahmad Zaki as assisted him.

Off course, we know Company 1/21. Drum roll please ....

.... the company is Brilliance Information Sdn Bhd (374044-H). The office is at 16, Jalan Meranti SD 13/5, Bandar Sri Damansara. Kuala Lumpur. It is a RM2 million paid-up company. Directors and shareholders are Asmar Haiza binti Ishak and Salehodin Majid.

It is in the business of retailing and distribution of soft and hardware computer peripherels and related products and services. They are currently implementing the GST system for Customs.

The link man for Brilliance with Ministry of Finance or their Chief Lobbyist is a retired Deputy Director General of Public Service Department (or TKPPA) by the name of Dato' A. Wahab bin Mulajat.

Other than doing lobby work for big projects for big companies, this Dato is CEO Wafada Technic & Consult Sdn Bhd. Check out the Directors and client here.

He also supplies X Ray scanner and it's maintenance to Customs.

It should be a conflict of interest to have a former civil servant do lobby inside but there is no such law against it. Politicians can be imprisoned for having transaction with someone having transaction with government but civils servant can do transaction with the government they used to be employed to.

Since it is fine and the bloody lawyers and judges only under law and not ethics, let's not take this any further. So why did they manage to get such preference by 'orang dalam'?

Here is something else, Brilliance was initially never made it in the initial technical evaluation, supposedly by Customs.

Their systems used microclear product developed during father President George Bush for the Kuwait Iraq war. Apart from Kuwait, the product was used in Pakistan but scrap due to non performance. The Pakistani government is suing them.

More question, how did they get to be number 4 by MoF subcommittee?

Something smells funny right?

It is found that Brilliance had a revenue of RM21.3 million and PAT of RM9,438 for year ending March 2012. With a big project in hand, no increase financial capacity from previous project and only paid up capital of RM2 million, Brilliance does not have the means.

Korek punya korek, we found out that they have link with one Dato Mohd Jimmy Wong bin Abdullah who is a member of the Board of Director of Read here.

There are very old and serious issue with which we regretted for not exposing it during the time of Pak Lah.  We had some serious information on the crap behind but decided not to since it is not gentlemenly to whack on a fallen man.

We had met and heard Dato Dr Norraesah spoke in seminars and forums, thus we had given her high respect as an academician. Man are we suckers for academicians.

MYEG is the undisputed e-government provider in Malaysia. There are no competitors that can go near the company.

It is the sole concessionaires as the online government transactional services for the Malaysian community through its Electronic Government (E-Government) Initiatives. Riding on the government developed GITN, MYEG had access to database to enable transaction.

Initially, it was to collaborate with two other companies licensed to provide e-Government. But they used their monopolistic access to database to "kill" one competitor.  The other company was planned to collaborated with them and naturally did a golden parachute out.

This was all done within the political-civil servant insidious collaboration of anak menakan Pak Lah, Dr Noraessah (7 million shares), former UMNO Youth Tanjung, Dato Dr Munir Shah Raja Mustapha (209 million shares) and former MAMPU Director Gneral, Tan Sri Dato Muhammad Rais bin Karim (3.2 million shares).

e-Government was the project under MAMPU. Is it not a conflict of interest for Tan Sri Muahmmad Rais to be Director and holds few million shares? How could a member of the Board of PERKIM be doing so unethical and nearing corrupt like this? Does he have no conscience?

If one felt we should close one eye and let Bumiputera businessmen have their big break, look at the member of Directors again here.

It's Managing Director is Singaporean Wong Thean Soon. He holds 209 million shares.

Melayu get shares for selling influence but do nothing. Did not get knowledge, skill and management experiance...  WTF! Please do not vote for Dr Norraessah for Majlis Tertinggi UMNO

Furthermore, what the duck is a Company with Singaporean as founder and most likely major and controlling shareholder be awarded access to all information with regard to our Government and citizens?

This is not only leakage in a system but a security risk. Didn't anyone in Government and politics ponder to understand that risk during Pak Lah time?

Pak Lah, Singapore, monopoly contracts and unsavory practices... Asal Bukan Khairy (ASK)

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