By Lim Guan Eng
The Penang Development Corporation (PDC) Board decided on 9 February 2010 to award the open tender of managing the BJCC to a company that is worth more than RM 40 million over 10 years. Full details of the tender award will be published after the Chinese New Year in accordance with CAT principles of Competency, Accountability and Transparency.
BJCC is run by Island Golf Properties Bhd(IGP), a PDC owned subsidiary company. At the present moment Bayan Baru MP Dato Seri Zahrain Mohd Hashim is still the Chairman of IGP. Zahrain has been the Chairman and Director of Island Golf Properties Bhd since 9th July 2008. PDC has informed me that no letter has been sent by either PDC or IGP to any director of IGP of any changes.
Certain actions and claims by Zahrain on the IGP has compelled PDC to monitor IGP closely to ensure that IGP is run in the public interest and in compliance with CAT principles. PDC has been concerned at how Zahrain was leading the IGP, when he and the IGP recommended on 12 January 2009 that the operations of the BJCC be outsourced and awarded to a RM 2 company.
PDC Board meeting on 10 February 2009 rejected Zahrain and IGP’s recommendation that the RM 2 company be selected. Instead the PDC Board agreed with the Chief Minister’s recommendation that a fresh open tender be called.
The Chief Minister had based his recommendation for a fresh open tender for the management of BJCC on two important reasons. One, to allow a RM 2 private company to win the tender for running BJCC, that involves expenditure of tens of millions of ringgit, would make a mockery of the meaning of open tender system. Two, the RM 2 company had no track record of running a golf club and was established on 29 Sept 2008. The RM 2 company was established a mere two months before the tender, clearly with the sole intended purpose of bidding for the tender in December 2008.
I had refused to heed requests to follow the recommendation by Zahrain and IGP to select the RM 2 company. Instead I had insisted on full compliance with the PDC Board’s directive that a fresh open tender must be held in line with the CAT principles. The fresh open tender exercise was carried out last year with 7 interested applicants.
The PDC Board decided on 9 February 2010 meeting to select a company that offered a combined value of more than RM 40 million to BJCC over 10 years. The company selected has a track record and most importantly its paid up capital is not RM 2.
The time has come to look at open tenders and government contracts based solely on performance and public interest.