Govt’s agreement with Spanco remains in effect, says finance ministry

Spanco Sdn Bhd is being investigated by the Malaysian Anti-Corruption Commission on why it was given the job of managing the government’s vehicles. (Spanco pic)

PETALING JAYA: Putrajaya’s agreement with Spanco Sdn Bhd, the company handling the procurement and management of the government’s fleet of vehicles, remains in effect, says the finance ministry.

“The government has always ensured that the procurement agreement with Spanco to supply, maintain, and manage the government’s vehicle fleet is carried out according to requirements, complies with procurement procedures, and undergoes all necessary due diligence,” the ministry said.

“The contract is still ongoing, based on the terms agreed on between the government and Spanco.”

The ministry said this in a written parliamentary reply dated March 12 to Lim Lip Eng (PH-Kepong) on whether the contract with Spanco had caused harm to the country and if termination was warranted in the event that it was detrimental.

Spanco reportedly held the concession to supply and manage the government’s fleet of vehicles from 1993, although this ended in 2019.

An open tender was launched that year, as a joint venture between Berjaya Group and Naza Sdn Bhd reportedly secured a letter of intent for the deal.

Spanco is currently being investigated by the Malaysian Anti-Corruption Commission (MACC) as to why it was given the job of managing the government’s vehicles.

Several figures, including key government officials and a businessman, are expected to explain the matter to MACC.

In February, Prime Minister Anwar Ibrahim said the government’s agreement with Spanco was “hurting” the country and did not “sit well” with civil servants.