Do you know why the Opposition turned down the Federal Government's proposal to revise the allowance of the Members of Parliament? Because they already got more than enough; some of them are quite rich, to say.
Do you know why some projects in the Pakatan States are either abandoned, aborted or even failed to start? Because of too many red tapes.
And do you know why so many contractors in the Pakatan-controlled States refused any project, including the major ones? Because they are made to comply to sickening terms and conditions.
Okay. All this are inter-related. Money, contracts and contractors.
We only know that the bosses of the State GLC are highly paid, much higher than what the Prime Minister and Fed Govt GLC top circle are getting, the Mentri Besar, Chief Minister and most of the Pakatan state assemblymen are believed to be enjoying some perks extra perks.
States' GLC are imposing exorbitant 'fees and commission' for any projects awarded to the contractors and consultant.
I was told, for instance, that Selangor government imposes a compulsory 'kickback' of between 25 per cent to 35 per cent on big projects. Worst still, such a percentage is charged from the value of project and not from profit before tax.
I don't think any contractor enjoys a profit margin of more than 25 per cent for projects such as road maintenance or construction. At Federal level, such projects seldom passes the 12-20 per cent profit margin.
So, if a contractor undertakes a Selangor project, his company will have to bear heavy losses after making 'settlements' with the State officials, expecially the GLCs. And who controls the state GLCs? The Mentri Besar or Chief Minister and their 'team'.
And where do this 'kickbacks' money go? Not to the state govt purse but being shared among the lawmakers. So, an increase of 10 per cent to the monthly allowance is not a big deal; chicken feed!
Some contractors are squeezed to the last penny of profit. So, they eventually stop going after State projects and turn to Federal tenders instead.
Now you know...