Kuala lumpur: The Government Procurement Bill 2025 introduces a system of checks and balances that limits, rather than enhances, the powers of the finance minister, as clarified by Finance Minister II Datuk Seri Amir Hamzah Azizan. The Bill outlines specific legal provisions that allow for the finance minister's decisions in procurement matters to be challenged through a review panel and an independent procurement appeal tribunal.
According to BERNAMA News Agency, the finance minister's authority in procurement has been traditionally governed by Section 6(1) of the Financial Procedure Act 1957. This section provides broad powers over procurement policies, approvals, and exemptions. However, the new Bill brings in mechanisms for accountability, such as punitive actions for failures to declare interests or interference in procurement processes, ensuring that even the finance minister is held accountable.
The Bill, presented for its second reading at the Dewan Rakyat, also grants the finance minister the power under Clause 28(2) to determine procurement methods other than the open and competitive ones. Though, these regulations must include criteria and conditions, and non-compliance can lead to challenges by affected parties through the review panel and tribunal process.
Amir Hamzah emphasized the Bill's alignment with existing procurement directives and circulars, which elaborate on procurement policies and are supported by principles outlined in the Bill. The Bill's primary aim is to enhance governance effectiveness through legal principles, with procurement policy statements reflecting key national policies like the Bumiputera development agenda.
The finance minister highlighted that the Bill sets uniform standards and procedures, minimizing interpretation differences, non-compliance, or power abuse. Prime Minister Datuk Seri Anwar Ibrahim noted that the Bill complements the Public Finance and Fiscal Responsibility Act 2023 and the Financial Procedure Act 1957, aiming to address financial leakages and optimize national resources for continued economic reform and improved quality of life.