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Media statement by Lim Guan Eng in Georgetown, Penang on Friday, 6th August 2010: 

No practice of issuing business support letters for government procurement or contracts in Penang because of open tender system 

Penang elected representatives do not engage in the practice of issuing business support letters for state government procurement or contracts. The Penang state government and its agencies do not require nor entertain such business support letters for any contractor to secure government projects.

There is no need for such practices of issuing business support letters as government projects are given under the open tender system. CAT governance based on competency accountability and transparency has adopted the e-tender approach through online computer applications, which also minimizes contact between government officers and contractors bidding for the project.

CAT governance and the open tender system has won praise not only from Class F contractors, who have an equal opportunity to win government jobs, but also from Transparency International. This is the first time that any government in Malaysia has received praise from Transparency International.

Elected representatives are still allowed to issue letters of support for welfare assistance, appeals of reductions of summonses compounds, application of hawkers' licenses, education loans and scholarships. However such letters of support must still be subject to existing rules. Penang government departments and agencies are required to evaluate the applications on such rules based on merits and needs.

*Lim Guan Eng, DAP Secretary General & Penang Chief Minister



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