Audit shows stimulus package projects paid but not delivered

(TMI) The Auditor General (AG) 2009 audit report has identified 67 cases across 31 projects in six ministries where RM753,723 was paid but the economic stimulus package procurements were not delivered or received at all.

It also discovered cases of under-delivery such as plywood doors being installed at a clinic in Menalun, Sarawak when HW Timber Solid Doors were ordered and PVC cisterns replacing TS39 Porcelain China models at the same clinic.

Projects include upgrading and restoration of police stations, restoration of hospital and clinic amenities, renovation of customs offices and the Graduate Employment Management Scheme (GEMS).

Some 38 cases worth RM580,983 however, were delivered following reminders by the AG.

The report also found 64 cases worth RM1.27 million involving eight ministries where the quality was less than satisfactory and 78 cases worth RM3.74 million that were not completed to specification but were still paid in full.

It was noted however that remedial action was taken in 27 of the cases following reminders from the auditors.

These include water flooding the floor of the SJKC Chung Kuang in Seberang Prai Selatan, Penang after new tiles were laid and the uneven and patchy school field at SK Monfort in Batu Pahat, Johor after upgrading works.

“In the audit’s view, the payment for works that are not delivered is a serious offense,” said the report.

“Instructions should be made for contractors to complete works that were not done properly failing which the payment should be refunded. Officials should also check and make sure all defects are fixed by the contractor before the end of the warranty period.”

The RM7 billion ESP was launched in November 2008 to ward off the global economic slowdown due to the financial crisis.

Many businesses, however, have complained that they have not felt the effects of the stimulus package.

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