Should elected representatives or their family members be allowed to own companies and be actively engaged in business?

To Dayak Chamber of Commerce and Industry Sarawak (DCCI) vice-president Leonard Martin Uning, the answer should be in the negative.

His reasoned that the existence of companies belonging to YBs ( Yang Berhormat ) or their family members can create unhealthy environment and unfair competition.

"It can lead to many problems such as abuse of power, favouritism in awards of projects and contracts and mismanagement of resources," he told the Parliamentary Select Committee on Integrity public hearing in Kuching today.

According to him, there is an unhealthy trend developing in the business environment.

"The government should do away with the requirements that project proposals by business communities must be supported by ministers or even menteri besar/chief minister," he said.

Leonard said business proposals should be assessed on the basis of merit rather than on the basis of political patronage.

"The present practice of tender processing leading to the award of tender could be subject to abuse. This has given rise to a lot of frustrations and lack of confidence in the tender system," he added.

Draw the line

The DCCI veep said the government should implement a more consistent system and procedures in order to avoid possible abuse.

There should be a panel to make decisions regarding contract estimates.

Consultant estimates should not be allowed to stand on their own because these can be manipulated, he said.

Leonard said the tender board should be allowed to make decisions on the tender based on professional considerations.

There must be a line drawn between 'Design & Built' projects and tendered projects.

"Political directives for tendered projects should be avoided. For example, if there are certain government policies to be enforced such as special privileges to bumiputera companies, then there should be clear govenment guidelines issued to the tender board," he added.

He said the Dayak Chamber supported any move to make sure that government-linked companies and state economic development corporations (SEDCs) should not be allowed to compete with the private sector companies.

"We are also of the view that public-listed companies should only be allowed to compete among themselves for tender projects rather than competing with the non public-listed companies to avoid unfair advantages," he added.