Does MOA leadership interfere in contract awards?

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MOA Leadership Does Not Interfere in Contract Awards

The leadership of the Ministry of Agriculture and Agro-based Industry (MOA), including the Minister and Deputy Minister, does not interfere in the awarding of contracts. This clarification was provided by Deputy Minister Sim Tze Tzin in Parliament, specifically addressing allegations that the ministry intended to award a paddy project exceeding RM1 billion to the National Farmers Organization (Nafas) after cancelling three contracts.
Contract Award Procedures

The awarding of contracts within the MOA follows a defined procedural pathway. Once a tender is approved at the ministry's level, it undergoes a mandatory validation process by the Ministry of Finance. Only after this validation is complete can the MOA proceed to issue a letter of acceptance to the selected tenderer.
Finance Ministry Validation Requirement

A Finance Ministry circular dated June 29, 2018, establishes a clear threshold for financial oversight. According to this directive, any tender with a value exceeding RM50 million necessitates validation by the Ministry of Finance. This procedure ensures a level of scrutiny for significant public expenditure.
Rejection of Specific Allegations

The statement in Parliament served to directly refute claims that the cancellation of three contracts for a paddy project, valued collectively at over RM1 billion, was a manoeuvre to favour the National Farmers Organization (Nafas). The Deputy Minister asserted that the tenders were subject to the standard validation process by the Ministry of Finance, implying that the award decisions were not unilaterally made or influenced by internal ministry desires.

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Does MOA leadership interfere in contract awards?

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