Monday October 26, 2009

A-G’s 2008 report shows project delays, lack of oversight continue to cost govt millions of ringgit

PETALING JAYA: The Auditor-General’s Report for 2008, which was tabled in Parliament on Oct 19, reveal weaknesses that had been highlighted in the previous year’s report were a continuing thorn in the side of proper financial management at every level of government.

Delays in project completion seem to be a perennial problem and the lack of oversight by various ministries and departments in the procurement of goods and services continue to cost the Government hundreds of millions of ringgit.

These range from multi-billion ringgit infrastructure projects to the procurement of laptops and maintenance of government assets.

For example, Kolej Kemahiran Tinggi Mara Balik Pulau in Penang paid RM84,640 for two laptops or RM42,320 per laptop and spent RM2.08mil on computer software that was not used, among other things.

Then there is the over RM15mil the Perak government spent on new purchases of cars and maintenance over the past four years and still not being able to manage its vehicles properly.

Auditor-General Tan Sri Ambrin Buang said in the preface to the 2008 report that the audit revealed the non-compliance of various financial regulations in the management of Federal Government finances.

“The result of the audit showed that some of the federal ministries and departments were not serious in improving their performance in financial management, even though such weaknesses had been repeatedly reported and brought to their attention by the National Audit Department,” he said.

Weaknesses revealed in the report included the Finance Ministry’s public infrastructure maintenance programme, basic infrastructure programme and parliamentary constituency rural development projects involving RM4.59bil for 92,687 projects from 2005 to November 2008 that were still not satisfactorily implemented.

It said there were delays in project completion, work not done in accordance with the original scope of works, increased project costs due to the inclusion of procurement of equipment and assets in the scope of works, unutilised facilities upon completion, improper payments made for works not done and shortage of officers in project supervision.

The report highlighted that the Agriculture and Agro-based Industry Ministry’s Tanjung Manis integrated deep-sea fishing port in Mukah, Sarawak, built at a cost of RM313.62mil, did not achieve its “main objective” because of project delay, unsatisfactory work quality and non-completion or non-construction of certain basic facilities.

The Rural and Regional Development Ministry’s Infodesa programme was also singled out for mention due not only to the perennial problem of project delays but also to the delay in operating the completed Infodesa Centres.

The report said a total RM68.38mil had been spent on the programme as at Dec 31, 2008, but 156 completed centres were still not registered in the name of the Federal Land Commissioner. The programme has been ongoing since the Eighth Malaysia Plan (2001 to 2005).

It added that the Works Ministry’s poor planning of the Federal Government Administrative Centre in Muadzam Shah, Kedah resulted in the complex not occupied earlier.

“As at Dec 31, 2008, 95% of the Federal Government Administrative Centre was completed and a total of RM243.53mil was spent,” the report said, adding that lack of oversight caused project delays.

Weaknesses were also noted in the Science, Technology and Innovation Ministry’s human capital development programme where targets of schemes were not fully achieved, payments were made to unqualified recipients as well as inefficient monitoring and evaluation of the programme. The programme cost the Government RM153.73mil from 2006 to 2008.

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