The 2012 Auditor-General’s report has mentioned cost overruns in the construction of two major projects.
PETALING JAYA: Cost overruns in the construction of two major projects came to RM22.8mil, the 2012 Auditor-General’s Report revealed.
The projects involved a Royal Malaysian Navy college and training centre at the RMN base in Lumut, Perak, which incurred overun of RM10.2mil.
The report said initially, the RMN College was to cost RM41.46 mil.
“But, problems cropped up later and it was picked up by a new contractor,” it said.
Package A of the project covered the re-building of a training facility for officers, while Package B involved the construction of another training centre for non-commissioned officers.
Package B was beset by delays, which was then handed over to a second contractor.
The report said Syarikat Ijhraa (M) Sdn Bhd was awarded the project, but it failed to complete it on time. It was then awarded to JJM Integrated Sdn Bhd in 2009, which had completed 72.5% of the project as of Sept 3, 2013, when it should have been 88.3% completed.
The report cited several flaws in the awarding of the contract to Ijhraa as it did not comply with tender rules.
Another project was the construction of the Disaster Management and Crisis Institute (IPKBN) in Sepang, which was estimated to cost RM77.59mil, but had incurred an additional RM12.65mil in expenses.
“The problems were due to weak planning by the Public Works Department regarding the design and scope of work, unforeseen events at the construction sites and increases in the price of building materials,” it said.
The report, which was released in Parliament yesterday, said the complex housed facilities for the Special Malaysia Disaster Assistance and Rescue Team (Smart), a surau and clubhouse, but these lacked water and electricity supplies.
Smart was established in May 1994 and placed under the jurisdiction of the National Security Council.