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McKinsey paid RM36 million to set up Pemandu

By Regina Lee | Malaysiakini
Dec 3, 10

The government think-tank – Performance Management on Delivery Units (Pemandu) – is said to have come at the mind boggling price tag of RM66 million – even before it got down to work, with foreign consultants enjoying the biggest chunks.

Several documents obtained by Malaysiakini reveal that the spending last year, prior to the Pemandu launch, was mainly on “external consultants”, including American consultancy firm McKinsey and Co, which took the lion’s share of RM36 million.

The documents also reveal that among the other foreign and local consultants hired to set up Pemandu included Hay Group (which was paid RM11 million), Ethos & Co (RM1.5 million) and Alpha Platform (M) Sdn Bhd (RM1.5 million).

A mysterious “external consultant” named “Tarmidzi” also received RM3 million for work done in setting up Pemandu.

The documents noted that the government’s investment holding arm, Khazanah Nasional Bhd, had proposed to foot RM21 million of the bill, specifically for McKinsey’s engagement from April to September, 2009.

Meanwhile, the operations of Pemandu is estimated to take RM65.1 million for the whole of 2010, which includes more strategic and communications consultancy costs, and event management programmes for its open days.

Pemandu was set up on Sept 16, 2009 to oversee the implementation of the Economic Transformation Programme (ETP) and the Government Transformation Programme (GTP), the two key pillars of the government’s New Economic Model (NEM). It is now headed by Minister in the Prime Minister’s Department, Idris Jala.

RM60 million for ETP

Other documents show that the ETP unit of the think-tank has gobbled up RM60 million of government funds.

The ETP project was originally estimated to cost RM78 million, but it was revealed that the Finance Ministry only approved RM60 million for its implementation.

This include RM16 million paid to consultants for the seven National Key Result Areas laboratories, as previously announced by Prime Minister Najib Abdul Razak.

Cost projection for the ETP unit for 2011 and 2012 averages RM53 million a year, according to the documents.

While the bulk of the expenditure goes to the labs, it is revealed that a sizeable amount is also paid out to the directors, who are part of the 60-strong Pemandu staff.

The wages of the eight directors average about RM39,000 a month, while associate directors take home an average of RM23,300 monthly.

It has been reported that the prime minister only gets a monthly salary of RM22,800.

When contacted, a senior Pemandu representative said that she was unable to comment.

Najib will be announcing the concluding part of NEM in Putrajaya at 5pm today. The NEM, the first part of which was announced in March, aims to more than double the per capital income in Malaysia by 2020.

21 Replies to “McKinsey paid RM36 million to set up Pemandu”

  1. So the ETP, GTP, KPI, NKRA, NEM, what-you-name-it-you-get-it are all not jibbi’s ideas. They are the result of paying millions to apco and other foreign consultants. And all along I thought that jibbi was so intelligent as to think up all those ideas. Cis…….there goes my tax money again

  2. RM66 million = approx USD 20 million.

    That is not a lot in dollar terms.

    Now the guns are trained at Pemandu and McKinsey.

    The public wants to know why so much for so little brains? No offence, McKinsey. Show us your books or throw us your arguments, ok?

    It would be nice if Julian Assange and Wikileaks lend the Malaysian public a helping hand.

    Julian, Julian, wherefore art thou?

  5. Absolutely right. No matter how hard any third party tries, no one can run the country more expensively than BN. Simply because no one has that many number of crooks and “gaji buta” personnel.

  6. ///This include RM16 million paid to consultants for the seven National Key Result Areas laboratories, as previously announced by Prime Minister Najib Abdul Razak.///

    does this include the laboratory used for fabricating evidence found in saifool butthole?

  7. Are these UMNO so called, “Ketuanan Melayu”? or shall we call them, “GREAT BROWN SUCKERS WITH BORROWED WHITE BRAINS!”. Think tank!…my blooming foot! better classify them as, fish tank, waste water tank or better still, Septic tank. Make your choice, be my guest.

  8. When have anyone heard money paid in full without work done yet…unless money paid in full…the so call think tankers will work to make money disappear like magic.
    However these maybe the think tankers that teach Najib how to advertise …promote and mind controls methods….besides being speech writers….all privately done…cannot be registered as Govt. official employees….like ghost riders from the sky.
    They are here in Malaysia…everywhere..not known…and payments made to foreign companies…work done cannot be told and so the US20 million paid out….auditors keep asking…for what…no answers given.
    That’s one part of the story.
    The other part…US20 million held in trust for crooks at a small fee..with nonsensical reasons to pay in full.
    Why don’t MACC investigate?..to give you the real truths?
    I guess truths are already been exposed by so many.

  9. YB,
    Give them time and wait for few more months. I’m sure the results will show that it worth every penny we spend.
    It’s much more satisfying compare to RM 3m spend by Selangor state just celebrate some birthday.
    Brain is not cheap. I know brain is not cheap cause mine is very expensive. I do read somewhere that people pay a few millions just for 1 hour talk by Trump. I’m sure you understand this.
    To pay RM66 m for economy reform is logic. We are talking about billions of money management here let alone the human capitals.
    I remember Chinese phrase said “cheap thing not good, good thing not cheap”.
    Are you that cheap, Sir??

  11. //Brain is not cheap. I know brain is not cheap cause mine is very expensive//

    your brain is expensive because it is still brand new and not being use for a long time. you know, like new car, cost more than an used car.

    Better pay $66 million to Lim Guan Eng for economic reform know-how. oh i forgot, LGE is pendatang and si sepet. those kwailos are not.

  12. Simultaneously….Anwar is suspended from Parliament to talk about the money paid to a Jew firm in USA.
    Jews are very important people to the US Govt,..be it Democrat or Republican.
    This US20 million for advertising and promotional work.
    Now PEOPLE….tell me are millions spent for the benefits of PEOPLE or for UMNO B?
    Anwar’s mouth must be silence. Forget he is the the leader of Opposition. Treat him like nobody.
    WHY?…Because the more Anwar reveals the more voters run away from UMNO B..simple as that.

  13. McKinsey of course is well known but “Tarmidzi”?
    The report should provide details of of those high cost CON-sultants like CV and the turnaround experience they have.
    And I don’t mean experience where they come in and promise to reduce costs by 30% and the next month, there is a plan to reduce manpower by 35%!

  14. What a stark contrast! At one end you have Lim Guan Eng reclaiming RM33 million for the rakyat from the solid waste contractor; at the other end you have BN ministers who refused to use their brains but were willing to pay RM36 million to a foreign company to design programs for the country. Inevitably, Malaysians would ask whether programs designed by foreign companies would carry a “Malaysian touch” and be compatible with the socio-cultural aspects of Malaysia.

  16. D December issue of Forbes Asia magazine will be banned by UmnoB n Perkosa
    How dare it named Tony Fernandes, not doubt d pioneering chief executive officer of AirAsia Group but sill a pendatang n kaki botol, as its 2010 Businessman of the Year

  17. May be we should ask all those nations who were on par or even below par with us in the 70s and riden to a few folds above; the amount they spend on such external consultancy! We don’t seem bothered to resolve basic issues but preferred [ well someone is paid as liaison consultant] to repeat volumes of dream-painting, knowing very well that those recommendations will NEVER be implemented essentially because our fundamentals are so weak. Our love for “sloganeering” fits beautifully to the schemes of these dream sellers; no wonder USA is doing so well in the ART of Printing their DOLLARS. Soon we will, if not already, be doing the same art!! Malaysia! Don’t cry for US!!!

  19. If anyone needs a brain transplant, make sure you favor a brain from UMNO Ketuanan Melayu…not because it is a “Ketuanan” quality, it is because it has never been used! These arrogant, good for nothing UMNO creeps will just sit back and live on commissions, using handsomely paid butts to be their face!

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