DAP has brought to light a Finance Ministry circular that requires all government affiliated agencies to award direct purchases worth more than RM10,000 to bumiputera companies only.

In the circular, annual awards of supplies and services worth between RM10,000 to RM50,000 are to be given only to bumiputera-owned companies registered with the Finance Ministry. Only contracts worth less than RM10,000 are distributed through open tender.

The directive, enforced on Jan 1 2005, was circulated to all ministries' secretary generals, federal department chiefs, statutory body chiefs and heads of local authorities.

The thee-page circular was signed by former Finance Ministry secretary general Izzuddin Dali.

"This directive has really hurt non-bumi businesses. They have to close shop, unless they adopt the Ali Baba approach," Cheras MP Tan Kok Wai told a press conference in Kuala Lumpur today.

Earlier this month, a new requirement that all stationery and sundry shops within primary schools are to obtain their supplies from bumiputera-owned companies had drew flak from Chinese businesses.

At a press conference yesterday, Deputy Education Minister Hon Choon Kim said the schools were merely following a directive set by the Finance Ministry.

In today's front page report in Sin Chew Daily, MCA vice-president Dr Chua Soi Lek said he was shocked to learn of the directive and added that party leaders were not aware of its existence until recently.

'They are hypocrites'

Chua added that MCA president Ong Ka Ting had objected in yesterday's Cabinet meeting in Putrajaya.

DAP's Tan criticised MCA for denying knowledge of the circular's existence, calling leaders of the Chinese ruling component "hypocrites". Tan alleged that the school directive is linked with the circular, and that government officials have been in the know.

"They are hypocrites. They're pretending they didn't know. If they didn't know, then it's just sheer ignorance," he said.

"I call on the prime minister to withdraw the directive immediately and replace it with a fair procurement policy, where all sectors are taken care of without racial consideration," he said.

Tan said that Chinese businesses have suffered from the directive.

Citing an example, Tan said the Electrical & Electronics Association of Malaysia (TEEAM) has complained that all street lighting fixtures are now to be obtained from four bumiputera-owned companies.

"They're not even sure if they can find the suppliers. Many Chinese businessmen are very unhappy. They can't survive on RM10,000 awards a year, not with rising expenses. RM10,000 is chicken feed," he said.