KUALA LUMPUR: About 4,000 houses for second generation of Felcra and Risda settlers were promised, but no funds were allocated for them to be built.
The Auditor-General Report 2017 Series 2 noted that construction of the units were tabled in the 2016 Budget by the previous government but were never built as there were no funds allocated.
“In Budget 2016, 2,000 homes by Risda and 2,000 homes by the Felcra were approved, but allocation were not channeled to start construction work,” the report said.
The Finance Ministry allocated RM200 million to implement the RBN programme under the 11th Malaysian Plan (2016-2020).
Risda was supposed to build 500 RBN units and Felcra 540 in 2016 and 2017.
“However, only 351 homes (33.7 percent) were built, 88 units under Risda, and 263 units under Felcra, whereby only 61 units were actually occupied.
The RBN homes were intended to be purchased by second generation settlers with household incomes of less than RM4,000 a month.
The report urges all parties concerned to make improvements to address the programme’s weaknesses, including failing to help the B40 group.
The audit report recommends that the Housing and Local Government Ministry monitors the financial management of the RBN programme closely and ensures the grants are properly used following approval by the Ministry of Finance and Economic Planning Unit.