KUALA LUMPUR, Nov 15 — The Parliamentary Public Accounts Committee (PAC) has found the Ministry of Defence (Mindef) responsible for the defects in a RM102.75 million building as revealed by 2014’s Auditor-General’s (A-G) report.

According to the PAC, several weaknesses within Mindef had caused the problems with the Armed Forces’ Wisma Perwira, including the extra RM330,000 cost due to a construction delay of more than a year.

"In project design and build, all decisions must be finalised in the initial stage. The weakness on the Ministry of Defence’s part is from the aspect of monitoring contracts causing troubles to arise in this project,” said the PAC in a statement after a proceeding on the matter was finished.

"The Ministry of Defence does not have enough manpower and lack of expertise in the construction of multiple storey buildings.

"The weakness of the Ministry of Defence in the aspect of coordination and standard operating procedures has caused many loopholes that could be exploited,” it added.

The A-G report released in April 2015 said Putrajaya did not get "value for money” for the two 12-storey towers with a connecting bridge building, although construction and management were deemed "satisfactory”.

The Auditor-General also noted the lack of formal contracts and that contracts were not immediately signed to safeguard the government’s interests and comply with procurement procedures, besides saying that there was failure to comply with procurement guidelines on direct negotiation.

The PAC listed several recommendations for Mindef today, such as ensuring that the ministry has enough funds before even embarking on a project to allay problems in the future.

It also suggested for Mindef to manage the building’s security on its own instead of awarding contract to others to prevent additional cost

Four contractors were appointed, with Bisraya Construction Sdn Bhd getting the RM102.75 million contract to build Wisma Perwira through direct negotiation, while Virgin Properties Sdn Bhd also obtained a RM39.30 million contract through direct negotiation to operate the building for three years.

The Wisma Perwira facilities — including a gym, swimming pool, karaoke room and indoor games room — are for the use of existing Armed Forces officers and former officers or Veteran Members.

As of 2014, the number of members under Wisma Perwira was 1,912, the A-G report said.