KUALA LUMPUR, Dec 10 — The Malaysia Rubber Board has spent nearly RM100 million in developing five facilities in Sungai Buloh, four of which have since been discontinued.
This was one of the findings of the Auditor-General’s Report for 2019 Series 1, on the financial and audit statements of federal agencies. The board is an agency under the Plantation Industries and Commodities Ministry.
Approximately RM91.98 million was used to pay the board’s project delivery partner (PDP) and work package contractor due to the discontinued development of the four facilities.
Another RM2.8 million was paid to the PDP without additional agreement, while an estimated RM1.53 million worth of equipment and software remains unused as the facilities were never completed.
The report made several proposals to rectify this problem, such as recommending the board make more comprehensive project development planning to avoid projects that cannot be continued and the resultant wastage.
It also recommended that agreements be prepared and signed by both parties in the event of a change in the project’s cost, so that payments can be made in an orderly manner while the board’s interests are maintained.
Equipment and software not currently being used should be retasked for other purposes to avoid wastage, and appropriate action taken against officers who do not comply with the directives of the agency per the law, fiscal regulations, agreements and standard operating procedures.