Corruption issue raised in tender process for Yangon airport upgrade

[DagonKhan]

Corruption issue raised in tender process for Yangon airport upgrade Published on Friday, 20 September 2013 17:21

Questions are being raised about corruption in the process to select the tender winner for the upgrade of Yangon International Airport following the release of scorecards by the experts who were hired to evaluate the bidders.

Local company Pioneer Aerodrome Services Consortium, a subsidiary of the conglomerate Asia World Company, was declared the tender winner on August 9. Criticism arose among some of the international bidders when the scorecards by the Japanese experts emerged earlier this month.

The tender selection was based on the financial and technical aspects of the participants. In the final round, six companies competed for the project.

In the total financial points ranking, Pioneer Aerodrome stood second with a total of 76 points after Toyota Tsusho Corporation, which scored 90. Sojitz Corporation Consortium and Incheon Airport Consortium were ranked third and fourth with 76 and 66 points, respectively.

In the total technical points ranking, Pioneer Aerodrome was ranked sixth with 72 points. Incheon Airport Consortium stood in first place with 87.2 points, followed by Toyota Tsusho Corporation with 80.8 points. Sojitz Corporation ranked fourth at 75.2 points.

In the grand total of financial and technical scores, Toyota Tsusho Corporation stood first with 170.8 points, followed by Incheon Airport Consortium and Sojitz Corporation, with 153.2 and 149.2 points, respectively. Pioneer Aerodrome was ranked fourth with 148 points.

The international tender selection process is primarily based on the points system and how participants score in the major criteria. However, the tender for upgrading Yangon International Airport failed to observe this practice, say the international companies.

They allege that some government ministers and the families of some government leaders were involved in the tender selection, and that corruption took place.

The Myanmar government has indicated that it intends to take serious action against corruption. On January 8 of this year, it established a nine-member Anti-Corruption Committee chaired by Vice-President Sai Mauk Kham. On August 7, the Union Parliament enacted the anti-corruption law.

According to Section 55 of the anti-corruption law, political officials convicted of corruption are subject to a maximum jail term of 15 years, as well as discretionary fines. Under Section 56, non-political officer holders in the public service who are convicted of corruption are subject to a 10-year maximum jail term as well as discretionary fines. The Anti-Corruption Committee and the Bureau of Special Investigation are mandated with fighting corruption according to the law.

Nice leak.

[householder]

+1 for the leak, although Eleven is not a shining example of accurate journalism so a big pinch of salt required. Some good genuine opportunities for investment in MM, but anyone looking to invest must go in with eyes wide open and do dam_n good DD. This sort of crap doesn't help Myamar's efforts to attract FDI, which it desperately needs.

Myanmar government has indicated that it intends to take serious action against corruption.

Yeah it publicly announces intentions to do lots of things, and sets up lots of toothless commissions to big fanfare, which don't always amount to much or may have the goalposts shifted (Letpadaung/land grab commission etc.)

Edited September 21, 2013 by householder

[DagonKhan]

Problem is householder is that it is impossible to carry out DD. Sadly many people are offerring this service to would be investors and duping them into believing that they know what they're talking about. They don't.

I notice that many investors who are actually going ahead with their projects are ones who are not signing up with a local partner. I think there's two reasons for that; one they've realised that performing any form of DD that meets even the basic definition of DD is futile. Secondly, they've realised that they really don't need what the local partners have to offer.