MoF Detects Signs of Tender Manipulation as Specifications Allegedly Tailored for Certain Vendors
PUTRAJAYA: The Ministry of Finance (MoF) has detected signs of manipulation in government procurement processes, with tender specifications allegedly being crafted to favour specific vendors and undermine fair competition.
Treasury secretary-general Tan Sri Johan Mahmood Merican said several tenders initially appeared competitive but, after financial and technical evaluations, only one bidder remained eligible because the requirements had been designed to suit a particular company.
According to him, the issue is not isolated and has been identified repeatedly across multiple government agencies, including within the ministry itself.
“We have seen many cases where a tender appears competitive at first.
“But after the financial and technical assessments are completed, only one company qualifies because the specifications were tailored to match that particular vendor,” he said during the opening of the Malaysian Statutory Bodies Conference 2026 here today.
Also present were Public Service Department deputy director-general (Development) Datuk Dr Mohd Bakhari Ismail, Entrepreneur Development and Cooperatives Ministry secretary-general Datuk Seri Khairul Dzaimee Daud, Universiti Teknologi MARA vice-chancellor and Malaysian Statutory Bodies Association president Prof Datuk Dr Shahrin Sahib @ Sahibuddin, and Malaysian Palm Oil Board director-general Datuk Dr Ahmad Parveez Ghulam Kadir.
Johan said Prime Minister Datuk Seri Anwar Ibrahim, who also serves as finance minister, has taken a firm stance on the matter and halted the practice of direct negotiations for most government procurements.
He noted that while nearly all procurements are now carried out through open tenders, some parties continue to seek ways to manipulate the system.
“Malaysians can be very creative.
“When all procurements are conducted through tenders, some people find other ways by designing specifications that only one company can satisfy,” he said.
Johan stressed that the Ministry of Finance closely monitors procurement practices and will not compromise on any attempts to undermine the integrity of the government tender system.
He said the government has strengthened accountability and enforcement through the Government Procurement Bill 2025.
“In the past, procurement irregularities were often treated as administrative matters.
“If an officer had already retired, it was difficult to take action.
“But under the new law, even I would not be exempt after retirement if I were found to have committed wrongdoing,” he said.
According to Johan, the tougher legal framework is intended to ensure everyone involved in public procurement adheres to the highest standards of integrity and transparency.
He added that statutory bodies remain critical institutions in Malaysia’s development landscape, playing important roles not only in public service delivery but also in driving economic growth, innovation, education and social wellbeing.
Johan said stronger governance and organisational transformation within statutory bodies will be essential to meeting the country’s long-term development aspirations.
