Felda water supply project sees RM26.3 mil in discrepancies, says AG

(Focus Malaysia) – The water supply project managed by the Federal Land Development Authority (Felda) under the Prime Minister’s Department saw discrepancies and unallowed expenditures to the tune of RM26.3 mil, according to Auditor-General Nik Azman Nik Abdul Majid.

The first was reflected in the payment for items under individual packages. Each package initially had individual site offices, but these were later consolidated for a lower number of site offices. Felda paid RM706,400 in excess here, due to there being no reviews of the contracts.

Next, contractors had also claimed more than necessary the Construction Industry Development Board (CIDB) levy by as much as RM49,860, which was signed off by Felda, indicating a failure to check or carelessness on Felda’s part.

RM924,600 was also spent on seven Ford Ranger four-wheel drive vehicles for the project.

“It is against the rules for project vehicles to be purchased by the government, as the project vehicles to be used should only be the contractor’s vehicles,” said Nik Azman.

The water treatment plant at Bukit Sagu, Pahang, is also non-operational, due to an insufficient water source. This, according to Nik Azman, resulted in a loss of RM17.63 mil, with the location “being unsuitable.”

The river bank infiltration initiative also failed to provide sufficient water consistently compared to the agreed upon capacity, and this had cost the government RM6.89 mil.

“The requirement was for 640 cubic metres of water per hour, or a minimum of 15.6 million litres of water per day,” explained Nik Azman.

Finally, there was also the theft of equipment, resulting in losses of RM86,000. – July 14, 2020