KUALA LUMPUR, Nov 23, 2015:
The government has to bear a development project loss of RM26.87 million for the National Defence Education Centre (NDEC), better known as Puspahanas, due to several management shortcomings, according to a report released by Auditor-General today.
The huge loss, according to Auditor-General Tan Sri Ambrin Buang, was due to the project being delayed for almost two years — up to 282 days as of July 29 this year as well as the contractor’s poor performance.
Aside from the contractor’s poor performance, the land where Puspahanas project development situated also suffered a devaluation, he added.
He added that the project developer, Awan Megah Sdn Bhd (AMSB), was late in submitting Performance Bond of RM4.95 million.
An audit was carried out between May and July this year and it revealed that the project was less than satisfactory.
Following the loss, it was suggested that Defence Ministry (MinDef) to appoint capable contractors so that the project could be completed on time and avoid any further losses.
“MinDef have to ensure proper administration of contracts to protect government’s interest.
“They should improve monitoring activities during project implementation stage to ensure that it can be completed on time and according to contract specifications,” said Ambrin.
The Puspahanas project commenced on Sept 25, 2008 and was supposed to complete by Jan 24, 2011, according to the Construction Industry Development Board website.