Thursday, August 14, 2008

This is how they 'kill' a contractor

I didnt post anything on by blog yesterday as I was busy talking to a contractor friend from Penang. This is the story, friends... and please leave your comment accordingly:

He got a small government contract in Penang valued at RM3.9 million, not RM300 million. Before submitting his tender form, he estimated that the margin would be around 13 per cent or RM507,000.

Upon submission, he met a senior government officer working at the same ministry where the tender was called. So convinced that this officer could help him out in securing the contract, he gave him RM10,000 about 4 months ago.

While in waiting, he forked out another RM5,000 for the same purpose. Finally, he was called up to the ministry for a meeting last two weeks, during which he was told that his company has won the tender.

He was a happy man then.

However, when he went to the ministry on Monday to collect the Letter of Award (LA), a few senior officials told him that he got to allocate some RM for them. The amount is RM200,000.

After giving it a thought, he told me OK lah as there will still be some profits left. Then, he received a call from a former private secretary to a former deputy minister, telling him that he should also allocate another RM100,000 for his groups as he also lobbied for him.

Now, 15k + 200k + 100k is already RM315,000. Deducting from the forecast profit of 507,000, he will only chalk RM192,000. Still, there is no guarantee that he would make a profit as the cost of building materials have gone up of late.

Now he is in a dilemma. As he got to pay so many tolls, I advised him to go back to the ministry and return the LA. He was considering it.

22 comments:

ShokorBotak said...

Alamak Bro, ini yang membuat aku marah nie, susahlah macam nie. Kalau macam nie,
1. sudah RASUAH jadi nya..
2. Semua mau duit
3. Kalau boleh lah Bro, tell your freind it is better to return back the LA.
4. No use lah Bro.
5. Then go and report to the Bumiputra Rockers [BPR]
6. Habis cerita

azlan said...

Hope ACA read this entry

dr shamsiah said...

MY GOD! THIS IS UNBELIEVABLE. I HAVE HEARD OF SUCH CASES BUT NOT TO THIS EXTENT!

WHY DIDNT YOUR FRIEND LODGE A REPORT TO THE ACA, INSTEAD OF FEEDING THEM?

THE CONTRACT IS STILL HIS. DONT GIVE ANYMORE MONEY TO THOSE PEOPLE!

hj saleh, BERANANG said...

Assalamualaikum sdr bujai,

Pada saya, ini sudah lumrah, malah menjadi semakin ketara sejak Pak Lah mengambil alih kuasa daripada Dr Mahathir.

Saya sendiri adalah seorang kontraktor yang sering menjadi mangsa sebegini setiap kali dapat kontrak kecil.

Bagaimanapun, adakalanya kontraktor seperti saya tidak dapat berbuat apa-apa asalkan kami dapat untung kecil daripada projek yang diberikan.

tentang kawan sdr ini, saya rasa dia sendiri tidak mengjangka akan dibebani tol yang begitu banyak.

biasanya kalau kontrak untuk kelas C, paling banyak pun cuma RM50,000.

Apa pun, saya tabik kepada sdr kerana berani menyiarkan perkara sebegini dalam blog sdr. semoga ia membuka mata kerajaan kita

hashim said...

Jai,

These is common scenario not only in Government but also in all GLCs. Do you think, the government officers or the GLCs Managers just want to lick their air liur whilst the contractor drives Mercedes. Bomoh also asked for " duit pengeras", pleaselah, are you telling your contractor friend is so naive and he does know about these.

Asked any business development executives/Managers of a Vendors to the GLCs and any ministries, they know about this arrangement.

The famous modus operandi is when the bidders were approached by "Consultant" or runner of the tender boards. They will signed a lgitimate consultancy agreement appointing this so called runner/consultant to lobby for their bids.

Once, the bidder was successful and upon issuance of the invoice, he will need to pay the consultancy /arranger fee.

However, please note that, the consultancy fees will be embedded in the tender/contract. So the contractor will not lose, the loser will be the taxpayer.

Please lah, you think a salary of Rm500,000-00 for a GLC's CEO is enough whilst the contractors make millions in a contract.

Jai, in USA corruption is not permitted but lobbyist is a legitimate business.

me is not better said...

Ah, I thought only my hubby was being buggered...rupanya ramai lagi...in these times, RM192k better than nothing...kalau repot, nanti langsung tak dapat..tu lah lumrah perniagaan kat Malaysia...except untuk anak2 menteri dan ex-Perdana Menteri...kalau tengok total kontrak hubby, i should be driving my dream Audi TT or SLK 55...tapi banyak sangat bocor kat kengkawan...

me is not better said...

nak tambah sket...problem is, why did he give out the 10k in the first place? Was it asked of him? When we encourage such practices, it just snowballs, akhirnya makan diri sendiri..sama macam cik abang saya..tapi kalau kita pompuan cakap banyak..penampar le jawabnye..."habih apa lagi nak kasi anak2 makan...orang lain kasi habuan lagi banyak...tak nak kasi, bini pulak makan roti canai samapi 4 keping..nak support pun satu hal..."

Anonymous said...

Zina,curi,sumbang mahram,bongkak,hasad
dengki,tipu,judi,arak,dadah,
tinggalkan solat dan puasa,khalwat,makan babi,tunjuk aurat...ini adalah DOSA bagi orang Islam.

Seluroh MUFTI negara semesti nya bergabung dan MELANCARKAN jihad "RASUAH"! Jangan harapkan orang politik. Ramai orang melayu islam tidak faham bahwa rasuah dalam apa bentuk sekali pun adalah HARAM.

Anonymous said...

make ACA report ??? hahahahaha..I face a same situation. They even call AG office rep / ACA (junior officer rep) to attend the ministry meeting (if someone threatens to report to ACA..) and says the process is clean and transparence. This is the worst ever corruption in government where force me to wrote my personal complaint to KSN but ended no action. Hidup Pak Lah. – Pasir Gudang

Anonymous said...

Ha Ha...this gives a new meaning to the word of "bribe".
Sometimes no choice have to bribe to put food on the table, but this is just too much.
Imagine, these "tolls" don't need to put in one ounce of effort or sweat, but collect easy money .
Shameful....

bujai said...

shokorbotak,

kau nak marah kat sapa? yang memberi dan meminta sama je kedudukannya.

tapi kalau tak bagi, tak ada peluang plak dapat keje.

ni memang satu penyakit, macam kepala botak kau tu laa....

bujai said...

azlan,

let 'em read.... but i believe nobody will bother laaaa

bujai said...

sdr hashim,

its so common, alrite. nevertheless when we make it soooo common, we wont find it faulty anymore...

bujai said...

me is not better,

as u said, if you dont give, you wont get anything. when you got it, they'l hammer u nicely.

what can we do about it? take it or leave it.

even to ask your kid (if you have any) to go buy a copy of newspaper, he or she will ask for 'upah', betol tak?

bujai said...

anon,

jihad rasuah? hebat bunyinya tu... tapi, boleh ke diorang tu?

venice hills said...

bro bujai,
this is a good posting. although many will take it as a common thing today, i still think its very, very BAD!

i have seen many contractors succumbed to this dirty methods. they were left with small margins and sometimes nothing at all...

how are they going to survive in business?

give and take, u may call it, is nothing wrong.... but not to the extent that u have to strip naked!

si pitak said...

ini perbuatan yang melampau. kalau setakat dua tiga puluh ribu untuk projek sekecil ini, ok la jugak. ini memang nak membunuh namanya!

ptui!

vincent, PJ said...

graft is as old, maybe older than prostitution, bro.

its a common stigma now, everywhere, around the world.

nothing much can be done about it

Anonymous said...

So what else is new?

This has been going on for donkey years. Even the lowest contractor in some remote villages has not been spared.

Many years ago not many corrupted officers will dare to ask Malay contractors for kickback.

Now it is a demand in broad daylight. Malay, Chinese or Indian contractor.

The 'good' news is that at last the Malay contractors are at par
with the Chinese and Indian contractors.

avalion.

electrocutioner said...

More reasons for us to remove these 'obstacles' unless we 'redha' and accept all these as fate? The lowest level of 'iman' is to only hate these rampant acts in the heart.

Conspiracy Theorist said...

bro Bujai,

Ni nak tambah skit pasal tender nih..heheh..tak silap kalo tender besaq pun its jst a formality sal depa dah buat arrangement dah.. wat dey do is bila kontraktor dah submit tender depa akan rosakkan tender itu dengan cara koyakkan sikit muka surat tender yg ada important figure, ada yg tuang kopi atas tender dokumen dan ada yg bagi kena mee goreng skit atas tender docs tu..so yg tinggal tu yg company yg depa familiar je..shortlisted sampai 10 co..den depa akan suruh kekawan depa call CEO/MD co untk negotiate..so co yg berani nego tu ada harapan le nak dapat..tp selalu nya kena spent about 5-10% kickback pada dia org.. tp yg 10 ribu ringgit tu upfront tu dah standard sbb takkan depa nak buat keja buta n depa kata d upfront 10ribu tu kira duit lobi la..heheh.. apa pun ini la yg bagi Melayu sendiri mati sbb cina depa control market untuk barang binaan so depa leh main cost tp kalo Melayu nak main cost camne unless u ada member baik cina yg leh tolong u dapat material nagan murah..heheh..apo nak dikato..Cina ni depa leh dapat harga bahan binaan dgn murah sbb depa ada sindiket Triads yg bela depa..cina ni satu hati bila buat duit..share n share alike.. jst imagine depa leh dapat bahan binaan dgn free dan jual balik..err..yg tu tak leh cita kat cni le bro sebab ni pun gue cakapbayak dah ni..heheh...kang koi 1 pagi ada org datang ketuk pintu lak..heheh..apo nak dikato..

SAY NO TO NWO!! SAY BYE TO AnWar

p.s. d chinese sindiket controls d economy of Malaysia indirectly thru their clans organization.. heard of Dato' Alex Lee n Dato Khoo??..not BK Tan..i tink BK Tan ni cuma one of d many generals aje.

ok lah cerita saya ni semua nya temberang aje..jst for jokes,.heheh..wat can I say..(,")

donplaypuks® said...

Al lah,

This contractor is stupid. Check-out the art of the directly-negotiated non-tendered out EMU (EconomicMsplanningUnit@gov.con) at http://donplaypuks.blogspot.com to understand how the game must be played.
htttp://donplaypuks.blogspot.com