PETALING JAYA, 12 June 2009: The Selangor government will form an audit committee to monitor its waste management contracts to ensure that Selangor citizens are provided with value-for-money services, Menteri Besar Tan Sri Khalid Ibrahim said.
He said the audit committee would coordinate closely with solid waste management company Alam Flora Sdn Bhd to ensure that contracts were awarded to genuine operators, not brokers.
Khalid Ibrahim “Companies that are found to be brokers will have their contracts withdrawn immediately and these cases will be reported to the relevant authorities,” he said in a statement today.
He expressed hope that this would curb the unhealthy and unethical practice of awarding contracts to brokers instead of genuine operators, which he said was rampant under the previous administration.
On 8 June 2009, a local councillor from Petaling Jaya, A Thiruvenggadam, alleged that waste management contracts in Selangor were distributed to political parties, with 40% to Parti Keadilan Rakyat (PKR), and 30% each to PAS and the DAP.
Additionally, the PKR grassroots leader claimed that this year, Alam Flora was only allowed to choose 30% of the contractors while the remaining 70% were reserved for state-friendly companies. He also said that the 11 local councils had “no say” in the selection of contractors.
Subsequently, Selangor Umno Youth lodged a report with the Malaysian Anti-Corruption Commission (MACC) on 9 June.
However, Selangor executive councillor and local government, study and research committee chairperson Ronnie Liu dismissed Thiruvenggadam’s claims and requested Thiruvenggadam to substantiate his allegations with evidence.
The Selangor government also said in the statement that the audit committee would be conducting ground checks and inspecting the value of the services provided.
“The state is also in the midst of studying strategies for the implementation of a more transparent and accountable tender system for future contracts,” Khalid said.
On 9 June, the DAP called on the Selangor government to implement a competitive tender for its waste management contracts to dismiss the allegations. 
