PM Has No Legal Authority to Direct Direct Award Contracts, High Court Hears in Muhyiddin’s Jana Wibawa Trial

KUALA LUMPUR, August 19 — The Prime Minister holds no legal authority under government procurement laws and regulations to direct that a project be awarded directly to a specific company, the High Court was told today.

Testifying in the corruption trial of former Prime Minister Tan Sri Muhyiddin Yassin, Treasury Deputy Secretary-General (Policy) at the Finance Ministry, Datuk Zamzuri Abdul Aziz, clarified that statutory power regarding procurement approvals rests strictly with the Finance Minister.

Zamzuri, 56, who previously served as undersecretary of the Finance Ministry’s Government Procurement Division, explained the legal frameworks governing public tenders. He testified that for government projects valued below RM100 million, the relevant ministry’s Procurement Board maintains the authority to decide on contractor appointments. For projects exceeding the RM100 million threshold, the board must submit its recommendations or decisions to the Finance Ministry for official determination.

Taking the stand as the 26th prosecution witness, Zamzuri agreed during questioning by Deputy Public Prosecutor Datuk Wan Shaharuddin Wan Ladin that the Prime Minister’s Office (PMO) had been involved in the procurement and evaluation process for KCJ Engineering Sdn Bhd under the Jana Wibawa programme.

The court heard that KCJ Engineering had initially failed the preliminary screening conducted by the Jana Wibawa Programme Contractor Evaluation Committee. The firm had submitted a bid for a contract to construct a new road linking Felda Bukit Jalor to Gemas in Negeri Sembilan, but was flagged for an ongoing troubled project and unsatisfactory past performance.

Zamzuri concurred that under ordinary procurement protocols, a company failing the preliminary assessment would be automatically disqualified from further consideration.

However, Zamzuri confirmed that the PMO subsequently issued a letter dated November 13, 2020, providing additional details and listing KCJ Engineering. The letter was addressed to then Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz before being referred to Zamzuri for action.

Following the referral, Zamzuri instructed Government Procurement Division secretary Datin Rosni Mohd Yusoff, who chaired the evaluation committee, to assess the firm. Yesterday, Rosni testified as the 25th prosecution witness that the company had initially failed its performance review.

Zamzuri emphasized that without the firm being specifically named in the PMO letter, the committee would not have evaluated it, as only PMO-recommended contractors were processed under the Jana Wibawa framework. He added that no contractor under the direct-negotiation scheme could receive a Letter of Acceptance from the Public Works Department (JKR) without first undergoing this evaluation and subsequent price negotiations.

Muhyiddin, 79, faces four charges of using his position as Prime Minister and Bersatu president to receive RM225.3 million in bribes connected to Jana Wibawa projects, as well as three money laundering charges involving RM200 million.

The charges are framed under the Malaysian Anti-Corruption Commission (MACC) Act 2009 and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).

The trial before High Court Judge Noor Ruwena Md Nurdin continues tomorrow.

–NMT