KUALA LUMPUR – Putrajaya had to fork out an extra RM4.88 million for the New Air Traffic Control Centre and Related Systems for Kuala Lumpur Flight Information Region (New KL ATCC) project, according to the Auditor-General’s Report 2021 Series 1.
The report detailed that the extension of the Independent Checker Consultant (ICC) contract period was deemed invalid due to it being made after the original contract period expired.
This resulted in excess payments amounting to RM4.88 million being made, with RM63.21 million paid to the ICC as of December 31, 2021.
However, valid contract costs only amounted to RM58.33 million since the original ICC contract was valued at RM52.39 million, while the first additional ICC agreement cost RM5.94 million.
“Based on the first additional ICC agreement, the contract period was extended for two months until August 10, 2021. The ICC service period was then extended for a second time beginning August 18 until April 17, 2022 through a second additional agreement,” the report said.
“The ICC contract was terminated on August 10 because there was no contract extension for the period between August 11 to 17. Since the first additional agreement ended, the extension of the contract period through the second additional agreement is invalid.”
It said the original project allocation approved in the 11th and 12th Malaysia Plans was RM650.37 million while on May 17 this year, the Economic Planning Unit had approved an increase in the project ceiling to RM665.19 million.
Additionally, the report recorded that a payment of RM5.33 million to the ICC could not be verified to be in order while noting that the project involved the wastage of public funds amounting to RM2.18 million.
“The cases involved are related to failure to collect fines and impose penalties on contractors, as well as the cost of reimbursement to the consultant being included in the contract despite it being a violation of the circular.”
Besides that, the report stated that the Transport Ministry’s decision to administer the contract on a hybrid basis did not guarantee the protection of the government’s interest, claiming that the call saw a breach of financial regulations.
It added that weaknesses in the physical security aspects of the building and access to the system have exposed the operations of the New KL ATCC to the risk of intrusion, modifications and data loss.
Recommending that the ministry review all terms and conditions of the contract, the report also urged the ministry and the Malaysian Civil Aviation Authority to ensure that contractors perform all scopes of maintenance services accordingly and impose appropriate penalties.
The New KL ATCC project commenced operations on August 31 last year after five extensions of more than two years, or 898 days. – The Vibes, August 7, 2022
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