Lawmaker questions 'monopoly' over Perak solid waste management
The Perak government has been urged to explain why it had awarded a solid waste management contract without open tender.
In a statement today, Tebing Tinggi legislative assemblyperson Abdul Aziz Bari (above) said the decision was opaque and could make garbage collection more expensive because the decision would lead to a monopoly.
The Perak government has been urged to explain why it had awarded a solid waste management contract without open tender.
In a statement today, Tebing Tinggi legislative assemblyperson Abdul Aziz Bari (above) said the decision was opaque and could make garbage collection more expensive because the decision would lead to a monopoly.
"(Moreover), if services are not good enough, the public is unable to complain to local authorities and monopolistic companies are not required to perform social services," he said.
Aziz said he would take "appropriate action" if the state government does not explain themselves in 24 hours.
On June 15, Majuperak Holdings Bhd announced to Bursa Malaysia that it was entering into a joint venture with private company Mainiza Teknitek Recowaste Sdn Bhd.
The notice was issued after Mainiza informed Majuperak that the state government had agreed to appoint both companies to undertake solid waste management and public cleansing in the state.
Specifically, Mainiza will partner Majuperak's wholly-owned subsidiary Majuperak Utilities Management Sdn Bhd (MUMSB).
Perak Menteri Besar Faizal Azumu's former political secretary Nizran Noordin (photo) sits on both Majuperak and MUMSB's boardroom.
According to Majuperak's announcement, MUMSB was a company formed in 1982 but it remained dormant.
MUMSB's role was to secure the agreement of all of Perak's 15 local governments to enter into an agreement with Mainiza and to assist in the latter's dealings with the statement.
The announcement also stated that Mainiza would have to fund the entire JV project on its own.
According to Majuperak's latest financial results, the company made a loss of RM6.572 million in the year-ending Dec 31, 2019.
Majuperak is controlled by Perbadanan Kemajuan Negeri Perak (55.12 percent stake, according to the 2018 annual report) - a statutory body controlled by the menteri besar.
As of the end of 2017, PKNP has interests in two listed companies, including Majuperak, and wholly owns eight private companies.
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