Procurement issues in Malaysia

Abstract

PurposeThis study was undertaken with the aim of surveying the perception of the two main stakeholders in procurement system; the contractors and the procurement officers on issues such as accountability, transparency, corruption, integrity and cronyism pertaining to the public procurement system in Malaysia.Design/methodology/approachInterviews were conducted over a nine‐month period in 2007 to gauge the perception of the procurement officers and contractors on procurement issues in Malaysia. The interview data were then transcribed and grouped according to six main themes; transparency, procurement policies and procedures and its implementation, personnel involved in the procurement system, estimation/budget/pricing, professionalism and ethics and timeliness.FindingsOne of the common complaints made by the contractors was prevalence of interference from outside parties and cronyism, which affects the awarding of contracts. The procurement officers were blamed for malpractice and non‐compliance to the policies and procedures of the procurement system.Practical implicationsThe paper deals with sensitive issues and takes several months to successfully gather respondents who willing to give feedback on their experience with the procurement system. The data are first hand information and are carefully transcribed and categorized into categories to help better understanding of the issues raised by the respondents.Originality/valueThe paper deals with sensitive issues and takes several months to successfully gather respondents who willing to give feedback on their experience with the procurement system. The data are first hand information and are carefully transcribed and categorized into categories to help better understanding of the issues raised by the respondents and the private sector.

Compliance within a Regulatory Framework in Implementing Public Road Construction Projects

“…This is an indirect sanctioning measure to eradicate collusion associated with over staying in one position or workstation. Additional punitive measures may include, but not be limited to; demotion, prison sentences, confiscation of property of those found guilty and introducing attractive rewarding schemes for performing staff (Shu Hui et al, 2011).…”

“…In this example, public officers revealed Government prices to preferred contractors whilst selecting quotations in open tendering (Shu Hui et al, 2011). Such an attitude of accepting bribes and sharing fraudulent gains hampered confidentiality (Shu Hui et al, 2011). Noteworthy, the literature review revealed that some procurement officers demanded contractors' adherence to contract specifications by upholding professional integrity and their ethical code.…”

“…Similarly, in China's construction industry, a lack of professionalism affected compliance with regulatory frameworks Deng et al (2014) and in Malaysia, reports showed a lack of professionalism affected public construction projects. In this example, public officers revealed Government prices to preferred contractors whilst selecting quotations in open tendering (Shu Hui et al, 2011). Such an attitude of accepting bribes and sharing fraudulent gains hampered confidentiality (Shu Hui et al, 2011).…”

Sustainable procurement in the Canadian construction industry: challenges and benefits

“…Many researchers identified procurement as a main driver to integrate sustainability initiatives into construction practices (Adetunji et al 2003;Häkkinen and Belloni 2011;Brown et al 2012). However, flaws of traditional construction procurement methods have been frequently discussed in the literature (Hampton 1994;Walker and Hampson 2008;Hui et al 2011). Main criticisms for traditional procurement methods include, disregard for environment (Hampton 1994;Walker and Hampson 2008); disregard for society (Hampton 1994;Walker and Hampson 2008), disregard for life cycle costs (Walker and Hampson 2008;Pan et al 2012), and non-compliance with established policies and procedures (Hui et al 2011).…”

“…However, flaws of traditional construction procurement methods have been frequently discussed in the literature (Hampton 1994;Walker and Hampson 2008;Hui et al 2011). Main criticisms for traditional procurement methods include, disregard for environment (Hampton 1994;Walker and Hampson 2008); disregard for society (Hampton 1994;Walker and Hampson 2008), disregard for life cycle costs (Walker and Hampson 2008;Pan et al 2012), and non-compliance with established policies and procedures (Hui et al 2011). Even though there are many blemishes, at present, the strategic importance of procurement is acknowledged by many public and private sector organizations (Erridge et al 2001;Callender 2009;Construction industry review committee 2001).…”