The Anti-Corruption Agency (ACA) is investigating a RM4 million contract tendered out in 2001 by the Seberang Perai Municipal Council (MPSP) to a private company to carry out a revaluation study on assessment rates of premises on the Penang mainland.

It is learnt that the ACA had interviewed the council's present and past presidents, alternate chairmen of the assessment rate committee and officials in charge of the department.

A spokesperson from ACA Penang said the investigation would be completed soon but he declined to reveal more.

ACA started the investigation following a complaint lodged by the Penang DAP on the contract tender recently.

In the complaint, Penang DAP suspected something amiss behind the awarding of the contract and questioned why the project was privatised when the council had the manpower to fulfill the task.

However, a MPSP official, who spoke on the condition of anonymity, argued that the council did not have the adequate manpower to complete the job.

Under the contract, the company will have to re-evaluate the assessment rates of all legal premises, nearly 200,000 units, on the mainland. It is also tasked to computerise all accumulated data, which would enable the council to derive, check and provide in-depth details and information on all premises.

"The revaluation exercise was to assist us to implement new assessment rate charges, computerise our operations and provide correct information to the public.

"No way the council has the manpower to do the job," stressed the official.

'Illogical, impractical'

However, Penang DAP organising secretary Danny Law Heng Kiang disagreed.

He said it was illogical, impractical and a waste of public funds to privatise the project especially when other local authorities in the country did not resort to such measures.

"The Penang Island Municipal Council has been reevaluating properties on the island using its own manpower. Why should MPSP be different?" he queried.

Over the years, he said revaluation was being carried out by dividing and earmarking different areas into several zones, and estimating current market rental rates of properties in those areas.

Besides that information, data on properties were computerised several years ago. The council only needs to update them each year.

"Why do we need a RM4 million contract to do that? If so, why does the council need an assessment rate department, officers and staff.

"We hope that the ACA investigation will answer all our questions," said Law.

ATHI VEERANGGAN is malaysiakini's Penang-based stringer.