EXCLUSIVE Selangor state executive councillor Ronnie Liu has denied a state audit observation report on irregularities in procurements of services and products worth more than RM1 million for a state publicity programme.

NONE It was a misunderstanding, Liu argued, saying the procurements were put under a wrong government agency which has tighter procurement procedures.

The internal audit observation of the Selangor state treasury on the expenses of Karnival Terima Kasih Rakyat, a political carnival organised on March 25 to celebrate Pakatan Rakyat's fourth anniversary of governance in Selangor, reported various irregularities in its procurement processes.

Most of the payments to suppliers have been suspended on the advice of the state treasury.

NONE The irregularities include the absence of quotations and procurement approvals for products and services costing more than RM50,000, suppliers not registered with both state and federal treasuries, and suppliers providing services and products that did not fall within the areas of their registered businesses.

However, questioned by Malaysiakini yesterday, Liu, who was coordinator for the carnival, explained that the procurements should have been listed under Menteri Besar Incorporated (MBI), a state-owned company led by Menteri Besar Abdul Khalid Ibrahim, and not under the state treasury.

'Less red tape'

After he was appointed by the state exco to chair the carnival's organising committee, Liu, who is Pandamaran assemblyperson, said the organising committee decided to fund the carnival through Geran Selangorku, a state grant managed by MBI.

That was because MBI has less red tape and procurement procedures, and also because he needed to get things done in a very short time since the carnival was just around the corner, Liu elaborated

"But MBI refused to release the payments and passed the buck to the state treasury. Then the state treasury, which was not clear about the situation, conducted the audit observation and tabled the report in the state exco meeting.

"If the procurements are made under the state treasury, then there are irregularities, but the procurements should have been made under MBI. So there is no irregularity in procurements, only a procedural mistake."

Realising the mistake, the state exco then withdrew the report, Liu claimed, but Malaysiakini could not verify this.

NONE On the absence of an open tender and quotation process, Liu said the costs of many of the services and products provided, such as karaoke, performances by artistes, advertisements in media, food and beverages and balloons and banners were small amounts and directly procured by the organising committee.

"Open tenders could not be called for stage performances because the artistes were separately engaged. Few of them add up to a certain small amount. The allowance for religious speakers was also given separately, and the motorbike shows were done by different groups.

"We don't have the habit of giving all programmes to a single event management company. Hence open tenders could not be called for these events," Liu explained.

NONE However, this is contrary to the audit observation report, which states that many procurements above RM50,000 were done without quotations called and financial approvals sought, and that an event management company was roped in to handle the performances.

According to Liu, MBI has withheld the payments for more than three months and many suppliers have been appealing to him for help.

"It is very difficult for me to explain to them. I have lost count of how many times I have said sorry to them in each month," said Liu, adding that he was also a victim of the "misunderstanding".

Malaysiakini learnt that even until yesterday, the suppliers were still making a beeline for the state government building to plead for their long overdue payments.

When contacted, the Menteri Besar's Office said Khalid was aware of the issue and would investigate.

S'gor finds violations in RM1mil in procurements