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My friend is a sub-contractor for National Housing Company Bhd (SPNB), he told me cost overrun is not an issue as long as someone in Finance Ministry is willing to sign a cheque for claims. Of course in return for their kindness, 5% kickback is a must.
The chain of corruption is like this, 5% kickback for Minister => 15% margin for main contractor => 15% margin for 1st subcontractor => 10% for Bangala and Indonesia 2nd subcontractor.
35% margin is gone by the time a housing project is reaching 2nd subcontractors. 2nd subcontractors have to cut corner to squeeze out razor thin margin with poor workmanship and materials.
Thus, such extra 2 billion RM budget for Mindef housing projects is not a news to me. This 2 billion RM is just changing hand to UMNO cronies through a legalized channel.
Side issue, the food ration in Mindef was terrible bad in 90s, I have to eat at outside stalls with own money.
‘Graft in military housing since 90s’ Syed Jaymal Zahiid | October 16, 2012
The Malay Army Veteran Association chief also claims previous contractors dished out contracts to cronies.
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