Education Ministry Investigates School Canteen Cartel Claims, Expresses Readiness To Support MACC Probe

PUTRAJAYA, Oct 27  – The Ministry of Education (MOE) has launched an internal review into allegations that companies sharing identical registered business addresses were involved in cartel activities or bidding collusion during the Phase Two 2026 Cooked Food Supply Services (BMB) tender for the 2027–2029 operational period.

MOE Secretary-General Datuk Wan Hashim Wan Rahim stated in an official press briefing on Tuesday, October 27, 2026, that the ministry views procurement integrity claims with utmost seriousness and stands ready to fully cooperate with the Malaysian Anti-Corruption Commission (MACC) if further investigation is required.

However, Wan Hashim emphasized that claims of corporate collusion or cartel behavior must be established through verifiable factual evidence rather than relying solely on shared business addresses or background profiles.

“Anything that could raise doubts about the integrity of the procurement process, including relationships between bidders, possible conflicts of interest and bidding patterns, will be duly examined to ensure that transparency and integrity are upheld,” Wan Hashim declared in response to inquiries raised by Tasek Gelugor MP Datuk Wan Saifulruddin Wan Jan.

The ministry confirmed that out of 245 tenders advertised under Phase Two—which drew 62,641 total bidding submissions—242 contracts were awarded to successful companies, two were cancelled due to hostel block upgrading works, and one was deferred following a schedule revision.

Wan Hashim clarified that no legally finalized Phase Two BMB tender awards have been revoked, noting that official procurement results remain accessible via the government’s MyProcurement portal.

Tender Specifications, Menu Costs, and Address Verification

Key details regarding contract values, technical evaluation metrics, and address verification findings include:

• Contract Value Disparities: Explaining wide value gaps across tenders, MOE clarified that the highest contract (RM38.7 million) involves a national sports school where specialized athlete menus cost between RM90.84 and RM92.93 per student daily, compared to RM26.10 to RM31.65 per student daily at standard primary or secondary schools.
• Supplier Field Code Verification: All successful tenderers held valid Ministry of Finance registrations under Field Code 040103 (Muslim Cooked Food) and were evaluated on technical capacity, experience, and operational readiness.
• On-Site Food Preparation Rules: Addressing concerns over residential registered addresses, MOE noted that food service execution takes place entirely within school kitchens under a prepare-cook-serve arrangement rather than off-site supplier premises.
• Financial Solvency Standards: Winning bidders must possess working capital equivalent to 3 to 5 percent of the estimated contract value, verified via direct bank cross-checks prior to the issuance of Letters of Acceptance (SST).
• Kedah School Tender Rebuttal: MOE refuted claims that the hostel tender for SMK Seri Badong in Kedah went to a Terengganu firm, confirming via the e-Procurement system that the winning bidder’s registered address is in Yan, Kedah.

–NMT