The government is continuing to stifle healthy competition by issuing ‘Treasury Contract Circulars' which specifies a chosen panel of contractors from which all government bodies must either employ or make their purchases from.

NONE Tony Pua (DAP-Petaling Jaya Utara) continues to scrutinise government contracts that were made public in the

In his latest revelation on the government's MyProcurement portal which lists government contracts , Pua (left) said all ministries, state governments, statutory bodies and local authorities had been ordered to get the services of these chosen contractors for specific goods and services.

"This shows that the finance ministry has intentionally or otherwise, created oligopolies controlling all forms of supplies to the government and enriching a selected few," he said.

He elaborated on the example he revealed yesterday with regards to the defence ministry having purchased RM 27.5 million worth of ladies leather shoes from a Syarikat Visi Footwear Sdn Bhd.

Coffee powder too

"I have also been made aware that Visi Footwear is one of the only three companies nationwide which forms a panel of companies which can supply leather shoes to the government as dictated in the Treasury Contract Circulars dated Nov 29 2006 and June 3 2008."

Pua claimed that the other two companies were Pearl Crown Trading Sdn Bhd and Maranocorp Industries Sdn Bhd.

He added the irony of the circular was that it stated that the panel was to ‘create a positive competition in businesses' when in effect it entrenched rent-seeking and patronage and promoted oligopolistic collusion which resulted in higher prices at the expense of the taxpayers.

Pua said a further check with the treasury portal revealed that there were hundreds of similar circulars in force for specific products ranging from seminar bags made from PVC or canvas to metal beds, lubricants, wood furniture, metal furniture, cloth furniture, mattresses, instant 500 gram coffee powder, flavoured cordials, chili sauce, envelopes, spices and many more.