Malaysia

PAC urges MACC to probe into failed uCustoms costing RM272.99 mil

Project proposed in October 2013 was supposed to be up and running by 2015

Updated 2 years ago · Published on 28 Sep 2021 4:37PM

PAC urges MACC to probe into failed uCustoms costing RM272.99 mil
The 2019 Auditor-General’s Report found that RM272.99 million in payments were made for the uCustoms project and was extended five times. – Facebook pic, September 28, 2021

by G. Surach

KUALA LUMPUR – The Malaysian Anti-Corruption Commission (MACC) has been asked to investigate RM272.99 million in payments by the Customs Department for the failed Ubiquitous Customs (uCustoms) system project.

Speaking to reporters at the Parliament building today, Public Accounts Committee (PAC) chairman Wong Kah Woh said the commission should be more aggressive and serious in tackling issues raised in the Auditor-General’s Report.

“The PAC calls on the MACC to immediately investigate all punitive issues listed under the report,” he said.

His call comes after the newly released second series of the 2019 Auditor-General’s Report today revealed that the payments were for the non-functioning uCustoms online system.

The PAC, Wong said, will meet to discuss the findings from the report next month to ensure proceedings related to incriminating findings will commence. 

The Finance Ministry and Customs Department, he added, will be queried with regard to uCustoms.

Meanwhile, Auditor-General Datuk Nik Azman Nik Abdul Majid, who was also present at the press conference, said the uCustoms project, which was first proposed in October 2013, had originally cost RM 317.7 million before it ballooned to RM397.3 million.

“The audit found that RM272.99 million in payments were made for the project and was extended five times,” he added.

According to the report, the uCustoms project was supposed to have been completed within two years by October 25, 2015.

“A proper feasibility study was not conducted before the uCustoms project was implemented.

“There were also weaknesses arising from the incapability and inefficiency of the supplier’s personnel, combined with the high turnover rate among senior officers with the uCustoms supplier team,” the report read.

The report also said that the appointed consultant failed to play its part as the project management office.

“The weaknesses also involves the payment process, where 13 payment vouchers amounting to RM64.89 million were not attached with complete supporting documents

“The sum of RM272.99 million was paid to the supplier and project management office.

“The project management office has only claimed liquidated ascertained damages (LAD) compensation of RM55,660 to be imposed.
 
“A notice for LAD amounting to RM3.94 million was issued to the company bearing the registration number 374044-H on December 31, 2020, for EOT 3 and EOT 4,” the report states. – The Vibes, September 28, 2021

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