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Friday 1 April 2011

Free WiFi: Gerakan lauds CM’s U-turn

A Gerakan Youth leader lauds the initiative and stresses that the contract must be awarded through an open tender.

ALOR STAR: Kedah Gerakan Youth wing today welcomed the Penang government’s decision to consider bids by alternative companies to carry out the state’s free WiFi initiative.

However, the wing’s head Tan Keng Liang insisted that the RM8.5 million WiFi contract must be awarded to any deserving company only through an open tender system.

“Only an open tender system can ensure that the contract to provide free WiFi will be transparent,” he told FMT.

He was responding to Penang Chief Minister Lim Guan Eng’s announcement this week to allow other bidders for the free WiFi initiative.

Previously, the state government decided to award the contract for phase two of the free Wifi project to REDtone International Bhd.

Lim said on Monday that only one public-listed company had come forward to provide free broadband access under the state’s free WiFi initiative, the first such initiative in the country.

The chief minister said an open tender system was not offered for the project as the state government wanted a reputable company to take charge.

Moreover, REDtone was willing to set up, provide and maintain 750 free WiFi hotspots in public areas in the state without any funding from the state government under the first phase.

Under phase two, REDtone would install another 750 free WiFi hotspots over the next five years in Penang.

Lim, however, came under fire from several quarters for not exercising the state’s much-lauded open tender system in awarding the second phase contract.

Lim had said the main reason why REDtone was offered to carry out the phase two project “without an open tender” was because it was the only company that applied for and qualified for the award.

Moreover, he explained the company had to be public-listed for the state government to have “some sort of guarantee” on the completion of the project.

‘Against the Orange Book’

Following strong criticism, Lim made a U-turn and announced that the state government was willing to consider other bids provided that “the bidders accepted the conditions imposed on the current operating company.”

Tan said the refusal by Lim’s government to hold an open tender in the first place was against the principles of Pakatan Rakyat’s Common Policy Framework (CPF) and Orange Book.

He said the non-implementation of the open system actually implied that the Pakatan government had presumed that “no other company would take up the project.”

“The state government should not presume that the current offer is the best deal for the people. It shall be confirmed and affirmed transparently via the open tender exercise,” he stressed.

However, Tan appreciated the free WiFi initiative, saying that “it is timely and vital for the growth of the state and country’s telecommunication industry.”

“Such initiative is crucial in the current information age,” he added.

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