KUALA LUMPUR: The Malacca government had made several bad calls in the implementation of public low-cost housing projects.

This is the findings of a report by the Auditor-General on the Malacca government tabled in the Dewan Rakyat yesterday.

Among the poor decisions highlighted was the awarding of the Bukit Larang public housing project in Telok Mas, Melaka Tengah, to a contractor with no solid financial background.

The project, which was awarded to Syarikat Saidin Sdn Bhd at the tender price of RM9.77 million, was eventually abandoned when the company could not complete the project.

The Auditor-General pointed out that the tender awarded to Syarikat Saidin was 28.5 per cent lower than the estimate of RM13.67 million set by the Melaka Housing Board, an entity under the state Chief Minister's department.
Under the tender requirements set by the National Housing Department, the acceptable deviation from the authorised estimate is 10 per cent higher or lower.

"The appointment of a contractor with no solid financial background has affected the project's implementation schedule and the quality of the houses built," the report said.

The report added that the state government suffered losses of RM3.05 million after it failed in its claim against Syarikat Saidin, which was in the process of closing down after its contract with the state government was cancelled on Sept 3, 2002.

The Auditor-General also pointed out the lack of direct monitoring of public housing projects by the state government in its capacity as the owner of the projects.

"No technical officers were assigned to monitor the implementation of these projects.

"This led to the usage of low-quality material and improper installation, compromising the roof structure and ceiling of completed houses," the report said.

The report also highlighted the poor implementation of the Computerised Land Registration System by the Melaka Revenue and Strata Department and the Melaka Tengah Land and District Department.

It discovered numerous discrepancies in the implementation of the system, which was initiated on April 1, 2001.

It concluded that the system had not effectively modernised the transfer of land ownership and management.

The audit also highlighted the department's failure to ensure the integrity and validity of ownership data to ensure more cost-effective and secure registration, aside from improving facilities to acquire land information.

In a separate report on the state's finances and financial management, the Auditor-General noted that the Malacca government's financial standing was unstable and could only support short-term expenditure.

"The state government must reduce its outstanding loan repayments and review the implementation of mega-projects," it added.