Tag Archives: WTF

Sarawak builds RM20mil bridge to nowhere, needs another RM50mil to connect somewhere

The Sarawak Public Works Department (JKR) had proposed the construction of the RM20.43 million Batang Strap Bridge in Sri Aman Sarawak, forgetting a link road to nearby villages, according to the Auditor-General Report 2011.

The result – a 182.4 metre concrete bridge that connects the nearby town Pekan Pantu to shrubs on the other side of the river.

“An audit survey on Dec 17, 2011 of the project site at Pantu, Sri Aman found that the concrete bridge project worth RM20.43 million could not fully stimulate the local economy after completion as the 10km road across the river to link the long houses and schools there had not been built,” the report reads.

Without the 10km road, it adds, some 23 long houses with a population of 3,000 and four schools have no access to the bridge and beyond to Pekan Pantu.

In a March 7 reply, the department said it will propose the construction of the road, estimated to cost RM50 million in the third rolling plan under the Tenth Malaysian Plan.

“As a temporary measure, JKR proposed to construct a 500m dirt road to connect to the logging road to the Batang Strap bridge at an estimated cost of RM500,000,” it said.

This was among several projects under a special RM1 billion allocation from the federal government for road upgrades and construction in Sarawak.

An audit at the federal level had rated the 175 projects as “less than satisfactory” due to delays and poor quality .

– Malaysiakini

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Sarawak builds RM20mil bridge to nowhere
Oct 19, 2012


Defence Ministry pays RM3.2bil instead of RM1.74bil for shoddy quarters

Shoddy quarters

A Defence Ministry contract to build living quarters for married military personnel has not only incurred a bill of RM3.21 billion, but has seen the delivery of shoddy units.

The cost for the 38 projects comprising 9,455 units of quarters ranging from flats to bungalows was initially estimated at RM1.74 billion but ballooned to RM3.21 billion – an 84 percent cost overrun, the Auditor-General’s Report 2011 notes.

The Auditor-General’s Office had audited 12 of these projects, finding that these had contributed to RM1.3 billion of the cost overrun stemming from, among others, delays of up to 1,240 days for delivery.

It found that only one of the audited projects, which were part of the 9th Malaysia Plan, had been awarded through an open tender, while the rest were by direct negotiation, limited tender or by obtaining quotations.

Six of these projects are located in the Klang Valley and were awarded to Syarikat USL, a joint venture by the Finance Ministry-owned Syarikat Perumahan Negara Bhd and the Armed Forces Fund Board Sdn Bhd.

According to the audit report, Syarikat SUL was found to be “inexperienced” and “technically incompetent” to complete the projects.

It was fined RM87.12 million for the delays, but payment was later waived by the Finance Ministry following an application by the Defence Ministry.

“The exemption of the fine … caused losses and undermined the government’s interests …,” the audit report states.

“The Defence Ministry should not have accepted the final products as it had many construction faults and damages, forcing armed personnel to stay in poor quality dwellings.”

It also recommended that the contractor should be “blacklisted” for performance failure.

Photographs appended to the audit report showed ceiling boards which had rotted through due to leaks in the roof. Leaks were also found in bungalows for higher ranking personnel.

It also found that the office unit at the Jalan U Thant quarters in Kuala Lumpur had a “bad stench” due to a “leak in the sewerage system” .

Up to 2,085 complaints of damage were made for projects constructed by Syarikat SUL, but the company did not address these.

“As such, the Defence Ministry had to appoint a third-party contractor to deal with it at an extra cost of RM1.84 million,” reads the report.

Of the 38 projects, only the one in Kinabatangan, Sabah has yet to be completed.

However, in December 2011, the audit staff found that the captain’s quarters there was being inhabited by “foreign workers and their families”.

To this, the ministry responded that the contractor has been fined RM13,314.86 for each day’s delay and that project is – as at April this year – 91 percent compete.

Past problems

The audit further noted that Syarikat USL-built airforce quarters in Subang that were completed in 2006 were in poor shape. Although the USL was responsible for repairs up to July 2008, these were not undertaken.

Despite this, the ministry had issued a ‘certificate of making good defects’ (CMGD) in February 2009, to indicate that repairs had been completed.

As at January last year, the ministry estimated the cost of repairs for the Subang quarters alone to be RM5 million.

“However, the bank guarantee of RM8.56 million by Syarikat USL to the ministry lapsed in January 2009,” reads the report.

“The ministry should have seized this bank guarantee as Syarikat SUL had failed to fulfill its responsibilities.”

Furniture provided was also of poor quality. Bed frames, chairs and tables were made of “easily-broken, low quality, thin plywood”, while some could not fit into the rooms as the items did not meet specifications.

A photograph of a “new unit” at the Kementah camp dated January 2012 showed furniture which could not be used due to “disintegration as these could not withstand a termite attack”.

– Malaysiakini

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Defence Ministry pays RM3.2bil for shoddy quarters
Oct 15, 2012

Customs officer goes on RM1.82mil shopping spree – How can this happen?

A Customs officer bought hundreds of items not allocated for, raking up a bill of RM1.82 million, the Auditor-General’s Report 2011 reveals.

The officer, who is not named in the report, had placed a verbal order for the items, some of these costing several thousands of ringgit, without the procurement division’s approval, leaving the Treasury to foot the bill.

He had ordered:

An extra 50 GPS navigation systems when he was only authorised to order 30, costing RM6,174 each;

An extra 100 search lights, when he had obtained approval to order only 50, costing RM1,292.60 each;

60 beacon lights at RM1,311 each;

250 rechargeable torchlights at RM1,217.16 each; and

100 walkie-talkies at RM5,259 each.

The officer had not been authorised to order any of the last three items.

According to the audit report, the purchases were made in 2007 but the supplier, True Target Resources, could not be paid as the bill went beyond the procurement budget of the Royal Customs and Excise Department.

It added that the Treasury in in 2010 approved the payment and an investigation into how the breach of regulations had taken place was started.

The Finance Ministry on Dec 22, 2010, issued a directive to the Customs Dpartment to lodge a police report against the errant officer.

“However, no action was taken against the officer involved as he had given a 24-hour notice of resignation on Feb 26, 2008,” the audit report states.

On May 24, 2012, the Customs Department lodged a police report against the errant officer.

– Malaysiakini

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Customs officer goes on RM1.82mil shopping spree
Oct 15, 2012

Binoculars with zoomed price

By now many people would have heard of the infamous night vision Marine binoculars bought by the Malaysian Marine Parks Department (JTLM) at the price of RM56,350. It was revealed in the Auditor-General’s report that the market price of this binoculars is only RM1,940 which means JTLM has overpaid 28 times the actual price!

Binoculars with zoomed price (from Auditor General Report 2010)

There is more to JTLM’s consistent overpayment for equipment:

– RM56,350 for another night vision Bushnell binoculars where actual price is RM2,827 (1,893% more)

– RM47,725 for radar set where actual price is RM8,255 (478% more)

– RM16,100 for LCD TV and DVD player where actual price is RM2,182 (638% more)

– RM11,845 for laptop and printer where actual price is 3,428 (246% more)

To rub salt into taxpayers’ wounds, the equipment purchased at inflated prices were not even delivered as specified in the agreement. The infamous night vision Marine binoculars was replaced with a binoculars without night vision costing only RM1,069. The laptop and printer were replaced with cheaper version which cost only RM2,137. And lastly, the supposedly RM16,100 LCD TV and DVD player were replaced with equipment which costs only RM195!


RM29 million Tsunami Warning System doesn’t work

After the 2004 tsunami the Ministry of Science, Technology and Innovation (MOSTI) announced with fanfare the setting up of a Tsunami Early Warning System. The initial cost of the system is RM18.7 million that includes 3 floating buoys costing RM1.0 million each. But because of a change in the location of the buoys there was an additional cost of RM10.28 million.

Big shots admiring the tsunami buoy

According to the Auditor-General report, Tsunami Buoy 1 was deployed in March 2006 but was reported lost in February 2010. Tsunami Buoy 2 was deployed in December 2005 but was reported lost in May 2006. And what happened to Buoy 3? It was not deployed at all because permission was not granted by the Phillipines government to located in their waters! It was later reported that this Buoy 3 is defective.

A new buoy was purchased in Sept 2010 to replaced Buoy 1 but again cannot be deployed because the Indonesian government did not allow Malaysian vessel to enter their waters to install the buoy. This brand new buoy is now sitting in a warehouse.

So folks, if there is a tsunami approaching Malaysia in the future there will be NO warning from our Tsunami Warning System. And this is after spending more than RM29 million of taxpayers’ money.

The questions are: why is there an additional cost of RM!0 million for changing the location of the buoys. Why do they have to be located in the waters of neighbouring countries instead of Malaysian waters? If it is absolutely necessary, why was permission not sought and confirmed before proceeding with the project?


RM 160 million for 300 computer labs in Sabah – only 2 completed

The RM160.74 million project in Sabah for building and equipping 300 computer labs for primary and secondary schools has failed miserably. Only 2 computer labs have been completed and handed over to the Ministry of Education.

Computer labs in Sabah? (fromAuditor General report 2010

The project was awarded to TimeCom Holdings Sdn Bhd and is supposed to last for 18 months from Oct 31, 2006 to Apr 30, 2008. After prolonged delays, only 2 of the labs were completed as of 2010 with the others in various stages of construction. Despite this appalling delays and shoddy work by the contractor, RM98.90 million of the RM113.74 million total construction cost has been paid!

Even though most of the computer labs have not been completed, the computers and other ICT equipment have been purchased and delivered. Consequently, most of these new equipment are stored in its original packing some for up to 3 years.

According to the Auditor-General report, some of the computers and equipment have been invested with termites.

Computers for termites (from Auditor General report 2010

Sabahan students, please go buy your own computer if you can afford it and don’t wait for the Ministry of Education to set up the computer labs. It will be too late.


(from Auditor General Report 2010)

The Wastage of Taxpayer Funds Report

Are you angry? Are you flabbergasted? Furious? Shaking your head? Pulling your hair? After reading what was revealed in the 2010 Auditor-General’s Report many Malaysians would be screaming (silently, if not out loud) at the wastage, blatant abuse, nonchalant excuses of the civil servants and employees of statutory boards in the handling of the hard-earned taxpayers’ money in their respective departments.

Every year we hear the same horror stories in the Auditor-General’s Report. Every year some joker will say action will be taken. But the very fact that the abuse is repeated again and again with greater audacity shows that no effective punishment has been meted out to offenders reported in previous reports.

Soon, these transgressions will be forgotten. The furor will die down until the next release of the Auditor-General’s Report. That is what they hope.

But this time we must keep the cauldron boiling. We cannot let the outrage die down until every offense has been punished. To this end, this blog is dedicated to reporting on the Wastage of Taxpayer Funds (WTF) not only as revealed in the Auditor-General’s reports but also other wastage of taxpayers’ money which may inexplicably escape mention in the A-G’s reports.