Former PM among those to face Malaysia’s anti-graft agency over vehicle contract awarded to firm since 1990s
Dr Mahathir Mohamad was Malaysia’s prime minister during the period that the company was awarded the contract involving the supply and management of government vehicles.
A woman walks by the Malaysian Anti-Corruption Commission (MACC) in Putrajaya on Jan 3, 2024. (Photo: CNA/Fadza Ishak)
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KUALA LUMPUR: Malaysia’s anti-graft agency will summon a former prime minister and a former finance minister to assist in the investigation of contracts awarded to a firm which had supplied and managed government vehicles since 1993.
“We have looked at the history of the company’s formation. Let’s say (the issue) happened in 1998 or 1999.
“So whoever was involved, including the prime minister and finance minister then, will have their statements recorded so that we can find out what they know about this case,” Malaysian Anti-Corruption Commission (MACC) chief commissioner Azam Baki said at a press conference on Tuesday (Feb 6), according to Free Malaysia Today (FMT).
The firm in question is Spanco - a Malaysian company that offers fleet management services. According to its website, Spanco was established in 1988 and currently manages more than 13,000 vehicle units.
The New Straits Times (NST) quoted Mr Azam as saying that the MACC is not currently prosecuting anyone because the probe is still in its early stages.
MACC officers are still reviewing the case facts, he added.
From 1981 to 2003, Dr Mahathir Mohamad served as Malaysia’s prime minister. He later served a second term as prime minister from 2018 to 2020.
During Dr Mahathir’s first term as prime minister, several people held the finance portfolio: They include Tengku Razaleigh Hamzah, Daim Zainuddin, incumbent Prime Minister Anwar Ibrahim as well as Dr Mahathir himself.
FMT on Monday reported Mr Anwar as saying that he had taken a “firm stance” on the company back in the 1990s when he was the finance minister but was unable to do anything due to a lack of “political will”.
“Now there is. So, investigate. I don’t know where the mistake is. But I know it’s not right,” he was quoted as saying by the news outlet.
At the press conference on Tuesday, Mr Azam reportedly said: “The issue (regarding the contract given to Spanco) was reported to MACC due to a dispute following the cancellation of a contract involving one company and how Spanco has been consistently awarded contracts since (the 1990s).
“Meanwhile, we have summoned over 20 individuals and have frozen about 80 accounts of companies and individuals related to the case.”
In 1993, Spanco was reportedly awarded the contract to supply and manage government vehicles. The agreement expired in December 2019 and in that same year, an open tender for the contract was launched and would last for the next 15 years.
Berjaya Group and Naza Sdn Bhd jointly bid for the contract and allegedly secured a letter of intent for the deal.
However, in 2023, Berjaya sued the Malaysian government and Spanco, claiming that the letter of intent was terminated and that the contract was awarded to Spanco in 2020 despite Berjaya and Naza’s higher bid.
According to FMT, Mr Azam said last month that the anti-graft agency wanted to uncover why Spanco was given the job of managing the government’s vehicles.
He also reportedly said that MACC was also looking into how Spanco got the contract despite another company receiving a letter of intent from the finance ministry.
Dr Mahathir’s sons - businessmen Mirzan Mahathir and Mokhzani Mahathir - as well as Daim are currently part of separate investigations by the MACC based on information contained in the Pandora Papers, a massive leak of financial records in 2021 that revealed offshore assets held by politicians and public figures worldwide.
Both of Dr Mahathir’s sons have been instructed to declare their assets last month but have yet to do so. Mr Azam said on Tuesday that they will be charged if they fail to declare their assets, reported local media.
The investigation into Mr Mirzan is reportedly regarding business activities related to sales and purchases of government-linked companies (GLC). The investigation into Mr Mokhzani also involves a GLC.
Meanwhile, Daim was charged on Jan 29 with failing to declare his assets, including his ownership of 38 companies, 25 properties and several luxury vehicles.
