The Treasury had issued a directive to contractors that they can only procure goods from one bumiputera company for government-sanctioned children's outdoor playground projects.

The letter, dated April 2, was signed by Treasury secretary-general Dr Wan Abd Aziz Wan Abdullah. It was addressed to all ministry general secretaries, federal department heads, state secretaries and local councils.

"At this point in time, Pro-Landscape Structure Sdn Bhd is the only company registered with the Finance Ministry as a bumiputera manufacturer of outdoor children's playgrounds.

"In accordance with the government's policy to assist bumiputera companies, procurement for these has to be done with the said company through direct negotiations.

"The price has to be negotiated to its lowest amount and presented to the Tender Board to decide.

"If there are other bumiputera manufacturers accredited by the Finance Ministry, the procurement can be done via a panel system through a quotation process," the two-paged letter read.

DAP, on behalf of several manufacturers and contractors of outdoor children's playgrounds in the country, highlighted this issue today.

Contractors are scared

Speaking at a press conference at the party headquarters in Petaling Jaya, playground manufacturer Unique Green Recreation Sdn Bhd director Kua Mong Whai said other contractors conducting government projects no longer deal with him.

"They have to abide by this directive. They are scared that their project would not be paid for by the state or federal government," he said.

It is estimated that the government budget for playgrounds in the country is about RM50 to 60 million a year.

The contractors that were present told reporters that Pro Landscape charged about 30 percent higher than other manufacturers.

Asked how this letter was discovered, Kua said he gave a price quotation to a bumiputera contractor and so did Pro Landscape.

"Later, the bumiputera contractor dealing with a government project showed us this letter from the Treasury and said he has to buy from Pro Landcape," he explained.

He noted that there are 10-12 other children's playground manufacturers but only small and medium sized companies are affected by this directive.

"The other bigger companies are involved in export so the directive does not hurt them as much as it hurts us," he said.

DAP secretary-general Lim Guan Eng, who was also present, said the manufacturers have no legal standing to do anything as they are not dealing with the government directly.

He pointed out that other bumiputera and non-bumiputera manufacturers are being "killed off" by the Treasury's decision to give contractual privileges to Pro Landscape.

"The Treasury is also killing other bumiputera contractors who are forced to buy from Pro Landscape as their profit margin becomes less. Pro Landscape is monopolising the industry," he said.

Open tender

He noted that this is a dangerous trend as it may even affect housing developers who need local council clearing to build outdoor children's playgrounds.

Lim also said this is another example of how the New Economic Policy has failed.

"This is a classic case of how the NEP is abused to benefit one single company," he asserted.

However, assistant to the government procurement deputy secretary Zaleha Yusof said the letter is no longer relevant.

"That letter does not have the latest information (concerning procurement of outdoor children's playground). It is no longer just one manufacturing company," she told malaysiakini.

Asked if it was back to open tender, she said "Yes" without elaborating further.