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AG's Report: PKNP needs to review small town redevelopment model

IPOH: Perak State Development Corporation (PKNP) should review the need and model of its Small Town Redevelopment (PSPK) projects.

The Auditor General’s Report 2017 Series 1 said it was paramount to review this matter to ensure that the shops and stalls component of the redevelopment efforts are fully operational and will benefit the local community.

In revising the PSPK projects, the report found that the project management, in terms of procurement, had complied with the rules. However, there were weaknesses in contract administration and construction management aspects.

“The major findings that needed to be addressed are the failure of contractors to complete two PSPK projects in Changkat Jong and Bandariang despite both being extended 240 days and 189 days, respectively.

“This includes the appointment of consultants and poor contract management that resulted in cases of works done beyond the contract period and records of unmaintained pre-working equipment supply,” the report said.

PKNP has allocated RM25.53 million for the redevelopment of eight small towns; Ijok and Kubu Gajah in Selama; Sauk in Kuala Kangsar; Lekir, Manjung; Simpang Lima, Parit Buntar; Slim Village, Slim; Bandariang, Gerik and Changkat Jong, Teluk Intan.

The report also mentioned that the financial performances of PSPK and PKNP were ineffective.

“More than six months have been taken to complete the contract price adjustment against PSPK Ijok, Lekir, Simpang Lima and Kubu Gajah. This was due to an error in calculation involving the preparation of documents."

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