by Rashvinjeet S. Bedi
The Star - 5/10/2013
Every year, when a new Auditor-General's report is published, the mismanagement of funds and irregularities highlighted in previous reports are forgotten amid fresh outcry for accountability of public funds. These are just some of the “old” cases in the respective years reports that made the news.
2011
1. Rail expensive: Delays to the 329km Ipoh-Padang Besar electric double-track rail project cost the Government an extra RM3.6bil in costs - on top of its RM12.49bil contract value.
The project was found to have been delayed by 669 days, incurring additional costs on, among others, land acquisition (RM698.17mil), compensation for squatters (RM37.64mil), consultant’s fees (RM265.96mil) and electricity reconnection chargers (RM203.48mil).
2. The Defence Ministry saw cost overruns in excess of RM1bil in the construction of married quarters facilities (RKAT) for members of the Malaysian Armed Forces.
Based on the audit, the cost to develop 38 RKAT across the country stood at RM3.206bil as of December 2011, nearly double the ceiling allocation of RM1.742bil set under the Ninth Malaysia Plan.
2010
3. Off target: The RM142mil RazakSAT remote sensing satellite, which failed to operate fully a year after its 2009 launch, was found to be off-target when capturing images.
The Auditor-General’s Report said the images, which were supposed to be observed from Sungai Buloh and Subang, had deviated 37km from its original target.
4.Boxed in: Almost RM64.7mil worth of new scientific equipment had been left in their boxes for as long as three years due to the delay in building the Assembly, Integration and Test (AIT) laboratory.
The delay was caused by the late approval of the Science, Technology and Innovation Ministry to construct the laboratory.
5. Paid for no work: Payments totalling nearly RM1.7mil were made to contractors without any work being done at three state funded religious schools in Sabah.
2009
6. Quiet theatre: The RM43.84mil Shah Alam Royal Theatre was found to have been unused since being completed in August 2008. The building, which was intended to stage plays and orchestra performances, had not been utilised after the contractor handed over possession to the Shah Alam City council.
7. Rich council: The Bentong municipal council paid RM871 for a toilet sign that could have been bought for RM65. The council overspent on furniture and fixtures by RM80,594 including RM38,700
on a set of spiral pendant lights that cost between RM1,500 and RM9,200 in the market. A total of RM49,420 was spent on 14 nyatoh timber leg armchairs, or RM3,530 each, although the market price for a unit was RM990.
2008
8. Super-expensive-computers: Kolej Kemahiran Tinggi Mara Balik Pulau in Penang purchased two units of Acer Aspire-5052ANWXMI laptops for RM84,640.
2006
9. Screwed by prices: The National Youth Skills Institutes (IKBN) under the Youth and Sports Ministry was found to have paid RM224 for a set of screwdrivers that had a market price of RM40, a car jack that cost RM50 was bought for RM5,700, a digital camera that cost RM2,990 was bought for RM8,254. For the 13 items that the report highlighted, the Government paid RM8.39mil more than the market price at that time.
10. Under utilised: The Customs Department under-utilised its RM290mil information technology system but were planning to spend another RM451.30mil to develop a new one.
2005
11. Extra expenses: Selangor incurred an additional RM21mil in expenses for the delay in constructing two slaughterhouses. The original cost to build the two slaughterhouses
was RM8mil.
12. More repairs needed: Despite RM65.51mil spent on construction costs and a delay of two years, the Gelami Lemi Fresh Water Fishery Research Centre in Jelebu, Negri Sembilan, had to undergo further repairs. The contractor, did not follow specifications, resulting in poor construction.
2004
13. Deals Gone Bad: Three water privatisation deals caused the Sabah state government to be saddled with debts of RM888.08mil.
14. Out of order: The RMAF said it was unable to repair flight simulators for the Hawk and F/A-18 jet fighters in Butterworth because of a lack of funds. This was despite it signing a RM50.3mil contract covering training, hardware and maintenance with a
private company in 1988 and extended to April 2005.
15. Complex under-utilised: The RM25mil International Sea Sports Complex in Labuan was left unutilised for nearly two years since it started operations in June 2001. In 2003 and 2004, only 51 activities including the Labuan International Sea Challenge, Labuan
Arts Festival, Aidilfitri Open House, and governmentdepartment and private functions were conducted at the complex.
16. Delays increase cost: Delays in building four district police headquarters (IPD) plus quarters in Raub, Gua Musang, Kerian and Perak Tengah caused the Government to suffer at least RM5.85mil in losses.
2003
17. Way above market price: The Government paid up to 36% above the market price for certain medicines used in public hospitals and clinics despite sourcing them through open tenders. Although 140 contracts worth RM425mil were awarded through open tenders between 2001 and 2003, 83 contracts worth RM283mil went to one supplier while the rest were distributed among 11 others. 2002
18. Below par pool: The so-called international-sized pool at the RM45.5 million Darul Ehsan Aquatic Centre fell short of the required measurements set by the swimming world's governing body, Fina. The length of the aquatic centre's pool is less than 50m, the standard for an Olympic-sized pool. 1999
19. Expensive tailoring: A total of RM3.02mil was paid to alter uniforms at the Armed Forces between 1997 and June 1999. The alteration fees for the 11th Royal Malay Regiment at Semenggo Camp, Sarawak, was RM31 per uniform while for the 15th Royal Malay Regiment Sri Miri Camp, it was RM68. At the Sungei Besi air force base, it was only 70 sen.
1998
20. Expensive Door: Yayasan Melaka, a foundation fully-owned by the state government to provide scholarship for poor students, purchased a door for RM25,000, toilet and floor mats worth RM11,000 and 25 designer briefcases worth RM38,750 among many others without calling for tenders or supporting quotations. Altogether, the foundation was found to have breached financial procedures in spending a total of RM639,423.
21. No letter for RM1.6bil in loans: Two loans totalling RM1.6bil were given to Perwaja Terengganu Sdn Bhd in 1997 and 1998 in which no letter of agreement was signed
between the company and the Government.
22. Failure to check account: The Defence Ministry failed to monitor an account which paid for the purchase of military equipment from the United States, resulting in a discrepancy amounting to US$32mil (RM121.6mil). As there was no monitoring done, about US$66.7mil (RM253.5mil) was withdrawn from the account although the
equipment supplied was worth only US$34.7mil (RM131.9mil).
1997
23. Poor revenue management: The Immigration Department in Damansara Town Centre did not bank in 4,680 bank drafts worth RM32mil in 1997. They were not cashed within the bank draft's validity period of three to six months. Of the amount, only 1,757
bank drafts worth RM14.97mil were recovered from those who issued the drafts.
24. Medical tools lying idle: Audit checks found 55 pieces of medical equipment worth RM1.41mil lying idle in government hospitals and dental clinics. The equipment included two operating microscopes each worth RM49,950 in Muar and Kangar Hospital, both unused for more than 19 months.
1995
25. Fund for disaster victims abused: The Malacca state used money from an emergency fund meant for flood and fire victims for the purchase of five Mercedes Benz cars for state executive councillors, a RM279,250 on an official car for the Malacca governor's wife, a RM271,500 car for the Chief Minister and a Proton Perdana costing
RM60,644. Other purchases included RM13,160 for a computer table and RM13,300 for two chairs. Altogether RM10.18 million for 29 expenses was drawn from the emergency fund in 1995.
1993
26. Exorbitant seminar: The Melaka state government paid RM194,204 for a political party seminar. The Chief Minister's Office paid for the purchase of fountain pens as souvenirs for the delegates and organisation costs totalling RM168,394. Another RM25,810 was for a dinner for seminar delegates. The government also undertook three purchases involving RM216,084 without calling for tenders in 1993. They include the purchase of 1,434 food packets costing RM81,594.
It is a rainy Sunday evening today. Sitting alone in the office and while surfing the net, I suddenly remembered my personal blog. I logged in and found out that the last I visited my blog was in 2010. 3 years has since passed and so many things has happened in my life, leaving me as a transformed person in certain aspects. Financially and professionally, I have gained a little and lost a little. But deep down, I am still the same old Mukilan - stubborn, lazy, spend-thrift, an angry man inside but calm outside and never forget to scold God and religion.
