Is Putrajaya still bleeding millions of ringgit despite suspending the National Service programme as part of the country's austerity measure?

This was raised by National Oversight and Whistleblowers (Now) director Akmal Nasir who revealed that Gunung Capital Berhad had received a RM164,951,885.70 contract to provide bus services to national service trainees.

He said Gunung Capital had announced the contract in a filing with Bursa Malaysia on Dec 29 last year, less than a month before Prime Minister Najib Abdul Razak ( right ) announced the suspension of the programme.

Akmal pointed out that despite Najib claiming the suspension will save the country RM400 million, the federal expenditure estimate showed that the national service programme for this year would cost RM612 million.

He asked if the missing RM212 million is due to contracts already inked by the government, and is thus forced to pay due to contractual obligations.

 

"The suspension of the national service programme 2015 is the right move to slash government spending.

"However, Najib must explain why the suspension can only save 65 percent of the estimated expenditure of the programme.

"Is it because the government must pay company contractors such as Gunung Capital RM165 million even though the bus services are no longer needed?" he said in a statement today.

Defence Minister Hishammuddin Hussein ( left ) was previously reported as saying that the closure of national service camps "will not affect operators and coaches who are on a permanent payroll".

Meanwhile, Akmal - who is also PKR Youth strategy director - further queried if the government was reluctant to end such contracts which may be linked to Umno.

Contracts linked to Umno?

He noted that the executive chairperson and CEO of Gunung Capital, Syed Abu Hussin Hafiz Syed Abdul Fasal, is also the Bukit Gantang Umno chief.

Under the contract, the company is to prepare 416 buses for 82 national service training camps starting from Dec 26 last year, to Dec 25, 2017.

National service programme director Mohamed Asri Yusof told Malaysiakini that the government has yet to decide on the matter of the bus contracts.

However, he indicated that even if a contract goes on, the number of buses will be slashed to only cater for national service trainers.

"There has yet to be a final decision, because even though the national service programme was suspended there is still the need for filler programmes for trainers.

"Perhaps the scope and number (of buses) may be changed," he added.

Additional reporting by Anne Muhammad.