KUALA LUMPUR, June 15 — The Agriculture and Agro-Based Industry Ministry’s secretary-general signed a RM268 million contract for a prawn farm project in 2012 without authorisation from the minister, the second series of the Auditor-General’s (A-G) 2014 report revealed today.
The contract, in the form of incentives for a company called Sunlight Inno Seafood Sdn Bhd for the Replicating Integrated Zone for Aquaculture Model project, should have been signed by the minister, the report said.
The Government Contracts Act 1949 allows a ministry secretary-general to receive authorisation to approve only contracts worth between RM20 million and RM100 million.
The minister at that time was Datuk Seri Noh Omar, who was succeeded by Datuk Seri Ismail Sabri Yaakob in 2013.
In its reply dated May 12, 2015, the ministry acknowledged its fault, calling it “unintentional”.
Despite that, it insisted that the minister can authorise the secretary-general to ink the deal, and is drafting a letter to allow him to do so.
Sunlight Inno was contracted for the development of a 2,200-hectare integrated aquaculture park in Sungai Telaga, Pitas, Sabah.
A total of RM2.142 billion was allocated for the project that was started in 2011 as one of the National Key Economic Areas, and is expected to be completed by 2020.
