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.