KUALA LUMPUR, Dec 2 — Further examples of poor financial management by the government were revealed today in the third batch of the 2012 Auditor-General’s (A-G) Report in which it was found that the cost of a disaster-relief complex project that was initially priced at RM77.59 million incurred an additional cost of RM12.65 million.
A federal audit attributed the ballooning cost of the Special Malaysian Disaster Assistance and Rescue Team (Smart) complex to the Works Ministry’s (JKR) poor management of the project.
“The contract cost had ballooned to RM12.65 million... due to weak management by JKR on the scope of job, unexpected situations on site and inflating costs of raw materials,” the 2012 A-G’s Report read.
The audit also found the complex design to be shoddy and unsafe, with poor-quality materials used for its construction.
JKR had also failed to complete the project on time, and was even found to have outsourced the project to the National Security Council, which was also criticised in the A-G’s Report for building a RM1.65 million training facility that was left unused.
The Smart Team Headquarters complex project, which fell under the purview of the Prime Minister’s Department, was constructed for administration, operation and logistics as well as training for Malaysia’s disaster rescue team.
The new complex was meant to replace the old Smart headquarters on Jalan Semarak here.
The project was divided into three phases. The first and second phases, which were the construction of the staff quarters, a crash-course circuit and a clubhouse, were completed in 2009 and 2010.
The third phase, which is the construction of the Crisis and Disaster Management Institute (IKBN), was abandoned due to a lack of funds.
Despite the completion of phases one and two, the A-G Report highlighted weaknesses in construction components which rendered them unusable.
Other problems with the project included the underused expensive staff quarters and dysfunctional electrical or mechanical components which made the building unsafe.
It also noted that the design of the building “was not practical”.
The staggering cost of projects has been a steady feature in the annual audits despite the government’s repeated assurance that it would not be repeated.
Recently, Public Accounts Committee chairman Datuk Nur Jazlan Mohamed said that not all of the weaknesses found in the audits were criminal in nature.
But opposition lawmakers and the public are growing weary of the annual audits’ consistent revelation of deplorable financial management on the part of the Barisan Nasional government, especially amid the country’s worrying debt pile.
Last month, Malaysian Anti Corruption Commission chief Tan Sri Abu Kassim Mohamed recommended that Parliament enact a law to give his anti-graft outfit the power to prosecute negligent officers following the findings of the 2012 A-G Report.
