KUALA LUMPUR: The Finance Ministry (MoF) today said there will be no additional or widening of powers of the Finance Minister from the Government Procurement Bill 2025, which is expected to be fully implemented early 2026.
Treasury Secretary-General Datuk Johan Mahmood Merican said the powers of the Finance Minister are not new and had existed under the Financial Procedures Act 1957.
He said the Government Procurement Act provides checks and balances. He also said Tender Board decisions and those by the minister can now be challenged at the Government Procurement Appeal Tribunal.
“This has never happened before. We now have a clear (jurisdiction of what) we call offences under the Government Procurement Bill, which the minister is potentially exposed to, if he were to commit any offiences under the bill,“ he told a media briefing on the recently passed bill.
He explained that previously, if there were any offences related to government procurement, only government officials were subject to disciplinary action. With this bill, punitive action can be imposed on individuals, government pensioners, companies and contractors as well as firms.
He said under the bill, punitive action against major offences in government procurement includes a ban on transferring government procurement contracts; failure to make a declaration of interest; interference in the government procurement process; obstructing officers’ duties; destroying records and providing false documents or information.
“These offences are criminal in nature and is punishable by fines or imprisonment, with the power of prosecution under the Attorney General’s Chambers (AGC),“ he said.
An independent Procurement Appeal Tribunal will be established comprising chair and deputy chair from the judiciary or legal professionals while the remaining members are not from the civil service, Johan said.
The Dewan Rakyat on Wednesday (Aug 27) passed the Government Procurement Bill 2025 following a vote, after intense debate involving 20 Members of Parliament from the government and opposition blocs.
Speaker Tan Sri Johari Abdul announced the final tally with 125 MPs voting in favour, 63 against, 32 absent, and one abstention.
During the second reading of the Bill, Prime Minister Datuk Seri Anwar Ibrahim said the government was taking proactive steps to limit administrative powers through the introduction of the Bill to enhance governance and accountability.
Johan said there will be closed-door Tribulan hearings but decisions made will be published.
He noted that the Bill operates at the legislative level, which sets out the core principles and defines offences, making it a framework for structural approval.
However, he noted that the specific procedures, such as the default method of procurement by tender and the conditions under which exceptions are allowed will be outlined in detail within the Treasury Instructions.
In fact, Johan pointed out that Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister during his winding-up speech in Dewan Rakyat on Thursday committed to incorporating suggestions raised during the debate into the Treasury instructions or guidelines to further support implementation.
“We do not foresee any immediate amendment to the Bill but some of the best practices will certainly be reinforced in the Treasury instructions and guidelines (including circulars),“ he said, adding that there would be no elements of override with the existing function of e-Perolehan.
Johan noted that the e-Perolehan must comply with the Bill and the system will be updated to reflect provisions in the law, especially company registration requirements.
He said public-private partnerships were also covered under the Bill should there be any government funds or assets involved.
On concerns from businesses whether the new Bill would make it harder to deal with the government, he said the Bill would not complicate the tender process, but would reinforce governance.
“They should only be worried if they are at risk of committing offences under the Government Procurement Bill,“ Johan said.
He added that sensitive procurements might have confidentiality exemptions but tenders normally disclosed sufficient information for review, while protecting confidential details like bidder identities and pricing. – Bernama