PETALING JAYA: The Malaysian External Trade Development Corporation (Matrade) building should stand as a "monument of shame" and a reminder that more needs to be done to wipe out corruption, Transparency International (TI) Malaysia president Tan Sri Ramon Navaratnam said today (May 24, 2006.

Adding to the pressure to bring the former contractors of the building to book for a nine-year delay in completing the building that has resulted in a 70% increase in cost, he said: "If no action is taken against Perangsang International Sdn Bhd (PISB) for failure to complete the building on time, then the public will be disillusioned with the government's capability to manage our money."

In an interview with theSun, he added: "Why should I pay taxes to the government if I know they are going to misuse it?"

The delay in handing over the building, which was originally scheduled for completion in 1997 saw the construction cost increase from the original RM167 million to RM287.5 million, of which RM64.8 million was spent on repairs.

Matrade which rented premises at Wisma Sime Darby due to the delay also lost RM120 million in opportunity cost from exhibition space rental.

On Tuesday (May 23, 2006), both Works Minister Datuk Seri S. Samy Vellu and International Trade and Industry Minister Datuk Seri Rafidah Aziz said they wanted action taken against PISB's board members and directors.

Navaratnam said: "The officers and contractors who are guilty of mismanaging and abusing public funds should be investigated and charged."

He said the trouble begins with the wrong choice of contractors, adding that the contractor should have been dismissed immediately once there were problems.

"It is okay to hand out contracts to Bumiputra companies, but give it to the best among them, the one that could have done a better job," he said, adding that the government should have an open tender system.

"Ideally there should be joint ventures between Bumiputras and non-Bumiputras so they can learn from each other and at the same time improve work quality and provide adequate checks and balances," he said.

According to the World Bank, between 20% and 30% of development budgets in developing countries are wasted on corruption and other leakages, he added.

"Even if the figure is 10% in Malaysia, this would mean mismanagement and wastage of RM20 billion out of the RM200 billion allocated for the 9th Malaysia Plan," Navaratnam said.