Penang Opposition Leader Azhar Ibrahim has slammed the state government for misleading the public about its open-tender system, which at times turn into negotiated tenders.

While debating the governor’s speech during the state assembly sitting today, Azhar (BN-Penaga) claimed that prices tendered by contractors bidding for projects were altered after several negotiations had taken place with officials.

Citing an example, Azhar claimed that a company that was provided the fifth least expensive bid was chosen after negotiations, instead of the cheapest bidder.

“Negotiations, negotiations, negotiations… what kind of open-tender system is this? They (the state) only say it is an open-tender system, but during the selection process, it becomes a closed tender,” he said.

In 2008, Chief Minister Lim Guan Eng said the open-tender system applies to projects exceeding RM50,000, while for projects between RM20,000 and RM50,000, a balloting system will be introduced.

BJCC management

Azhar also touched on the controversy surrounding the state decision to award troubled Japanese company Taiyo Resort (KL) Bhd the contract to run the Bukit Jambul Country Club (BJCC).

He said that checks have revealed that the company was in the red last year.

“So what happened to all the negotiations? This company’s financial situation seems to be very bad and yet it was chosen by the state to run BJCC,” he said in his speech.

The matter had been raised yesterday by Gerakan political caucus secretary Mark Ooi, who pointed out that the parent company Taiyo Resort Development (M) Sdn Bhd is in financial difficulties.

Ooi said that financial documents showed that the company’s current liabilities amounted to RM114,227,770 while losses after tax amounted to RM19,587,956.

The selection of a company to run the BJCC has been clouded with controversy for months, sparked by Bayan Baru MP Zahrain Hashim’s insistence that the contract be given to another company.

Zahrain made the recommendation when he was chairperson of Island Golf Properties Bhd, a wholly owned subsidiary of Penang Development Corporation, the state investment arm.