Review contract with Spanco amid ongoing court case - Kepong MP

A DAP lawmaker has urged Putrajaya to conduct a thorough review of its agreement with Spanco Sdn Bhd amid the ongoing court proceedings against company chairperson Robert Tan Hua Choon.

Kepong MP Lim Lip Eng questioned how the government plans to ensure the fulfilment of obligations under the contract with Spanco after Tan was accused of cheating the Finance Ministry into awarding the company a 15-year contract worth over RM3 billion to supply, maintain and manage official government vehicles.

Citing a written parliamentary reply by the Finance Ministry last month – which confirmed that the agreement with Spanco remains in effect, Lim said he was not entirely satisfied with the response.

“Isn’t it ironic that a multi-billion ringgit government contract was awarded to a company embroiled in an allegation of attempting to defraud the government? And if not, what should we call it?

“What is the value of the concession agreement, and when is it set to expire? Was the award of the contract to Spanco approved by the cabinet?” he queried in a brief statement today.

READ MORE: KINIGUIDE | What is Spanco and what do they do?

Spanco, established in 1988, is the largest independent provider of fleet management solutions in Malaysia.

In 1993, it was awarded a 25-year concession agreement with the government.

Cheating charge

On April 3, Tan pleaded not guilty to a charge of cheating linked to the procurement and management of the government’s vehicle fleet.

The 83-year-old tycoon was accused of committing the offence under Section 420 of the Penal Code, between Feb 27 and 28, 2019, at the Finance Ministry in Putrajaya.

According to the charge, Tan had allegedly deceived a ministry’s tender committee by submitting a bidder’s profile which stated that Spanco had a 30 percent bumiputera stake.

“…and therefore you have in a dishonest manner pushed the Finance Ministry into awarding the ‘Supply, Repair, Maintenance and Management of Government of Malaysia Vehicle Fleet’ contract valued at RM3,966,386,628 to Spanco Sdn Bhd, whereas the Finance Ministry would not have done so unless deceived in such a manner,” the charge sheet read.

The charge carries a minimum one-year prison sentence or up to 10 years imprisonment and whipping, as well as a fine.

The case is set for mention on June 4.

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