Govt to review project procurement to control expenditure
However, priority will be given to projects that provide an immediate impact on the well-being of the people, according to the Ministry of Finance (MoF).
In the Malaysia Treasury Circular - Guidelines on Public Expenditure Savings, the MoF said...
The government will review all procurement processes for projects that have yet to start to control development expenditure.
However, priority will be given to projects that provide an immediate impact on the well-being of the people, according to the Ministry of Finance (MoF).
In the Malaysia Treasury Circular - Guidelines on Public Expenditure Savings, the MoF said ministries, departments, and federal statutory bodies should continue with the pre-procurement processes which do not have financial implications.
Those processes include planning, designing, planning permission, and settling matters relating to land for the project, and others.
Treasury secretary-general Asri Hamidon (above) said to optimise expenditure, all ministries, departments, and agencies must closely monitor projects in progress to ensure timely completion.
Any variation order (VO) that causes additional project cost must be avoided.
If necessary, based on current procedure, the VO must be covered by using the current ceiling savings of the ministries, departments, agencies, or federal statutory bodies.
In addition, all expenditures for new asset procurement including purchasing of cars, furniture, and other office equipment that are not urgent and not yet ordered or signed should be postponed except if special MoF approvals are given.
- Bernama
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