KUALA LUMPUR, Aug 29 — The Government Procurement Bill 2025 will, for the first time, place ministers under the scope for state contracting, with Treasury Secretary-General Datuk Johan Mahmood Merican warning that any attempt to interfere — whether by politicians, officials or private parties — could now lead to fines or jail.
He explained that previously, the public sector purchasing had been guided solely by administrative instructions, but under the new Bill, any non-compliance can be addressed as a criminal offence.
“These measures apply to all parties, whether public officers, private entities, contractors, or companies attempting to interfere with government procurement. The law also extends to ministers, including the finance minister.
“No one is above the law. This also applied to me as the secretary-general,” he said in an online briefing today,
He added that the law also introduces punitive measures for certain offences, including prohibitions on transferring contracts without approval, attempting to influence or alter procurement decisions, and manipulating records or documents.
He said the penalties for those offences range from severe fines to imprisonment.
“For unauthorised contract transfers, the punishment can be up to three times the contract value or RM1 million, or up to 25 years in prison.
“For non-disclosure of conflicts, offenders can face fines of up to RM250,000 or imprisonment for up to five years or both,” he said.
Johan then said any party attempting to interfere with or influence government procurement decisions may face penalties of up to RM500,000 or imprisonment for up to five years.
He said for each offence, penalties may include substantial fines or imprisonment, with prosecutorial authority ultimately remaining under the jurisdiction of the Attorney General’s Chambers, as with other laws.
He explained that under the Bill, the finance minister will have the authority to formulate regulations and grant specific exemptions regarding procurement procedures.
Johan said the treasury secretary-general, a position he currently holds, will serve as the principal administrator of government procurement, with the power to issue administrative circulars.
