Tuesday September 11, 2007
Treasury says minister gave letter, A-G says no such letter
THE Youth and Sports Minister gave a letter of authority to the ministry’s secretary-general to sign eight contracts totalling more than RM449mil, the Treasury said.
This was disclosed in its reply to the points raised in the Auditor-General’s Report 2006.
The Auditor-General said that the secretary-general had signed 11 contracts on behalf of the Government worth between RM7.99mil and RM74.2mil that were related to the National Youth Skills Institute (IKBN) project.
“The secretary-general only has the authority to sign contracts worth less than RM5mil. Anything larger should be signed by the minister or someone to whom the authority has been given.
“However, during the audit, no such letter giving the authority to the secretary-general presented itself,” the A-G’s report had said.
On the purchase of equipment at higher than the market price, the Treasury said this was due to the different locations of the IKBN, with suppliers also including infrastructure cost in their quotation.
“The cost was still below the ceiling set by the Treasury,” it said.
On the purchase of 3.1 megapixel digital cameras, it said each device came with a tripod, USB cable, video cable, desktop computer and software CD. The A-G’s report had said that the camera was bought for RM8,254, when the market price was RM2,990.
On the 90 sets of Faber Castell technical pens bought for RM103,190.40, with each set costing RM1,146.56, the Treasury replied that each set included a set of spare nibs with a Rotring Vibrator.
The quotation given by A.W. Faber Castell (M) Sdn Bhd for the same model was RM160 per set.
These were part of the equipment bought for eight IKBN projects. The procurement was done in late 2002.
In Kundasang, Sabah, Youth and Sports Minister Datuk Azalina Othman Said said the ministry’s officials had explained the contracts to the A-G’s office.
She said the contracts dated back to 2002, before she was appointed to the post, and were issued following direct negotiations with the contractors concerned.
“If the Public Accounts Committee requests further explanation, we will comply. The ministry must be transparent.
“This matter should have not occurred in the first place. The contractors concerned should explain the prices that were charged to the Government,” she said.
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