KUALA LUMPUR, May 17— The Murum Hydroelectric Project (MHEP) cost Sarawak RM2.98 billion or RM530 million more than the original price, according to the Auditor-General’s report.
The First Series of the A-G’s Report 2015 released today stated that while the department was satisfied with Sarawak Energy Berhad (SEB)’s management of the project, there were weaknesses that must be addressed.
SEB is a wholly-owned subsidiary of the State Financial Secretary Incorporated (SFS Inc.)
The federal audit also found that survey works and issuance of land titles to communities affected by the Murum dam have yet to be completed, while ex-gratia payment to the affected parties was not in accordance with the rate approved by the government.
“Sarawak Energy Berhad as the project implementer have to comply with the procurement process and the rates as approved. Any changes in the scope or rates payable must obtain prior approval from the state government.
“Department of Land and Survey should speed up the survey work and the issuance of land titles to the affected communities in order to avoid problems in the implementation of agricultural programs,” the report said.
The Murum dam has a reservoir with a surface area of 245-sq km and a catchment area of 2,750-sq km.
The project is located along the Murum River in the Belaga district, which is about 200km from the Bintulu town and 70km upstream of the Bakun hydroelectric dam.
