KUALA LUMPUR, Oct 2 — The 2012 Auditor’s Report revealed that the overall procurement of 5 units of Beechcraft King Air 350 was less than satisfactory due to breach of conditions in the contract and delay in supplying aircrafts.

The 2012 Auditor General’s report that was tabled in Dewan Rakyat yesterday stated weaknesses because the objectives of providing training to pilots and engineers were not met while there was shortage of manpower, especially pilots and engineers.

In September 2005, PGU agreed to the proposal made by MOHA for the acquisition of Beechcraft King Air 350 which were more powerful and sophisticated.

This procurement was made through direct negotiations with Hawker Pacific Airservices Ltd via its agent EZ Aviation Sdn. Bhd while the contract price for the purchase of 5 units Beechcraft King Air 350 was USD58.25 million (RM186.40 million).

Following the weaknesses, the Auditor General recommended that Home Ministry and Air Operation Force (PGU) ensure that payments made to the contractor comply with the conditions as stipulated in the contract.

The report also recommended to ensure that clauses in contract relating to Ownership Take Over And Risk protect the Government’s interest to avoid losses in the procurement process.

There was also suggestion to impose Liquidated and Ascertained Damages against the supplier for late delivery of special operations aircraft and equipment in accordance with the conditions as stipulated in the contract.

“Action should also be taken to terminate the contract if the supplier fails to deliver the aircrafts as required; plus ensure that detailed information on the cost/pricing of each procurement is clearly stated so that the actual price of acquired goods or services rendered could be identified.

“Ensure that the supplier gets recognition from the Department of Civil Aviation  (DCA) for pilots who have attended training as pilot instructor. Take proactive action to ensure that PGU’s engineers and mechanics pass additional modules that have been set by DCA and also ensure that plans are set for engineers to acquire and possess necessary qualification so that they can carry out and certify aircraft maintenance works.

“Study the need of posts for pilots and engineers and ensure that relevant parties give due attention to such posts,” said the Auditor General’s report. – Bernama