The recent Auditor-General’s Report revealed some interesting discrepancies. Over nine ministry departments overspent their operating allocation for 2010 by a total of over RM3.7 billion, with over 130 cases of ‘weak expenditure management’ totaling over RM360 million.
This finding reminds me of a story of ‘weak expenditure management ‘ story in the local IT sector.
Someone attached with an IT vendor related that he was invited to a birthday bash held at a posh high-end restaurant, in honor of a senior customer executive.
During the event, despite the politic-king between the many IT vendors ( many of whom were competing for projects with the customer), there was much to cheer about – being a TGIF night and for some letting down of hair.
So as champagne and drinks flowed freely, congratulatory wishes and hugs going around with hearty pats amongst laughing friends, soon guards were let down and slowly surfaced a disgruntled air…
Apparently the invited IT vendors were requested to ‘chip in’ to make the party a success, to the tune of several thousand ringgit per vendor. Stories went around in whispers, comparing who paid how much in the process.
So, on one hand while the government’s ‘weak expenditure management’ resulted in overspending of tax payers’ money, such strong (arm?) tactics by the customer contribute to a ‘weak expenditure management’ phenomenon amongst the poor suppliers.
Of course one may say that the vendors have a choice to give the event a miss. But hey, that would risk them not having the spirit of celebration’ right?
IT BYTES BACK! says: IT Vendors should NOT condone such practices by giving in to the pressure. And Customers, each time you request for such coerced “gifts”, you have just sunken lower in the eyes of your suppliers.
