SHAH ALAM: The Selayang Municipal (MPS) and Hulu Selangor District councils (MDHS) have come under criticism in the Auditor General's Report 2016 Series 2 for their procurement management, deemed unsatisfactory.
The report stated that MDHS had directly engaged services to repair faulty engines, electrical wiring and air-conditioning units which neither fulfilled the necessary criteria nor received approval from the state financial officer.
The three procurements were worth RM3.1 million in total.
The AG's Report also found that there were contracts that remained unsigned within the period of four months from the date the agreement letter was issued. This involved 39 procurements for public cleaning works worth RM42.12 million.
There were also implementation of works that did not follow the fixed specifications and lacked quality. These were seen in two procurements worth RM632,075 and RM165,570, respectively.
There were also completed construction works which did not follow the original plans in two procurements, worth RM715,805.
The report had recommend, among others, that MDHS officers involved in the procurement process are given training and sent to courses in an effort to better understand the government's procurement procedures.
It also said that MDHS must have its internal audit carry out procurement auditing more frequently and ensure the financial regulations and conditions of the contract are adhered to.
For MPS, chief among its weaknesses was a procurement totalling RM97,350 for a rope-crossing tower owned by the council.
The facility could not be used to generate any income since Dec 2015 as there was no verification on its safety level.
Among other weaknesses were payment to a supply contract that did not follow the agreed price rate schedule.
The report said this resulted in excess payment involving a total of RM2,990 which had led to losses for the government. The delay in completing works without time extension approvals and not imposing fines on 11 procurement jobs within MPS totalling RM49,695 had also impacted the government.
The council also had an excess supply of toner ink, with poor management of its store leading to the warranty expiration of its stock, with wastage amounting to RM7,910.
The report also also found that 232 70-litre-capacity rubbish bins worth RM16,738 had yet to be distributed to the relevant parties, 805 days after receiving them.
The report recommended that MPS have its procurement planned more efficiently and ensure it achieves its objective of adhering to minimum cost and eliminating wastage of public funds.
It also suggested an increase in permanent and periodical monitoring of each procurement, ensure works by contractor are completed within the stipulated time, and that facilities which are already built are fully used to prevent wastage.