Long way to go: The external view of the project site in Sibu, Sarawak.
PETALING JAYA: The Program Perumahan Rakyat Seduan in Sibu, Sarawak – which has been delayed for 1,120 days – is one of 202 “sick” development projects nationwide.
The cause of the delay, according to the Auditor-General’s Report 3/2024 Series 3, is the contractor’s management and financial issues as well as the unresolved transfer of private land ownership to the Federal Government.
Based on a response from Housing and Local Government Ministry in the report, the contractor in charge had been terminated in April this year.
“Payments to private landowners are expected to be completed by November 2024 after approval is obtained from the Finance Ministry,” the report stated, noting that the project’s original cost was RM99.17mil.
Other delayed projects are several in Sabah, including the construction of the Jalan Libaran Bypass in Sandakan, Sabah; renovations to Hospital Beaufort, Sabah; construction of Taman Industri Kecil dan Sederhana Sedco in Sepanggar, Sabah; and Program Perumahan Rakyat Jalan Tungku in Lahad Datu, Sabah.These projects have been delayed by 1,021 days, 952 days, 678 days and 670 days respectively.
The Jalan Libaran Bypass project, in particular, had faced delays due to a collapse of the bridge in June 2020 while it was under construction.
“The Works Ministry’s Procurement Board has approved Change Order No.4 for the relocation of the steel girders due to safety concerns for the surrounding residents. This approved order has been submitted to the Finance Ministry on Aug 29, 2024,” the report stated.
The Series 3 audit also showed the sick projects involved 19 out of 26 ministries, which are part of the 8,279 development projects under Rolling Plan (RP) 3 of 12th Malaysia Plan (RMK12).
Of that number, 2,442 projects are in the post-implementation stage; 3,404 projects in the implementation stage, 2,323 projects are still in the pre-implementation stage; while 16 projects have been cancelled and 94 projects are under observation.
Ministries with sick projects include the Education Ministry (72), Natural Resources, Environment and Climate Change Ministry (24), Rural and Regional Development Ministry (22) and Health Ministry (18).
Both the Works Ministry and the Housing and Local Government Ministry have 12 “sick” projects each while the Youth and Sports Ministry has seven such projects.
The Transport, Defence and Higher Education ministries are faced with five “sick” projects each while the Prime Minister’s Department has four.
The Tourism, Arts and Culture Ministry, Economy Ministry, Human Resources Ministry and the Agriculture and Food Security Ministry also have “sick” projects to deal with, with three each.
The remaining “sick” projects are under Home Ministry, the Communications and Digital Ministry, Foreign Affairs Ministry and National Unity Ministry, with one each.
The 12th Malaysia Plan (RMK12) project expenditure from 2021 to 2023 exceeded the approved allocation of RM222.756bil, reaching RM231.92bil, said the Auditor-General.
This amount represents 55.9% of the total RM415bil ceiling allocation for RMK12 project implementation.
“The current status of RMK12 development projects as of Aug 26 (RP4) shows 1,434 projects (16.7%) in the post-implementation stage, 3,942 projects (45.9%) under implementation and 3,085 projects (35.9%) in the pre-implementation stage,” said Auditor-General Datuk Wan Suraya Wan Mohd Radzi.
The report also highlighted that 169 projects, or 4.3% of the projects under implementation, were behind schedule.
“The overall performance of RMK12 projects will only be measurable by the end of 2025.”
The Auditor-General’s Office recommended more thorough monitoring and continuous supervision as well as implement immediate intervention measures to ensure that RMK12 development projects are fully completed by the end of 2025.
The RMK12 is slated for five years beginning 2021. It was presented in Parliament on Sept 27, 2021 and approved on Oct 1, 2021.
