Hornbill Unleashed

August 4, 2017

AG’s Report raises serious questions on financial oversight in state – Baru

Filed under: Politics — Hornbill Unleashed @ 8:03 AM

Certain portions of the Auditor General’s (AG) Report that has been recently released raises serious questions that must be answered by the relevant bodies named, the most critical being the Sarawak Housing Development Corporation, said state PKR chairman Baru Bian.

Baru, who is Ba Kelalan assemblyman, pointed out that the Sarawak Housing Development Corporation (Perbadanan) was found to have paid out RM2.88 million to two contractors for paint jobs which they had not done.

“Certain procurements made were not done in accordance with the provisions of the applicable rules. There was advance payment of RM16.06 million without authorisation for an upgrading project in Sibu, resulting in the government incurring interest charges of RM1.77 million.

“Payments of RM30.40 million were made without verification by the officer, while payments amounting to RM20.77 million were unsupported by Payment Certificates.”

Baru said these findings point to serious mismanagement issues and poor financial oversight.

“This body is tasked with providing affordable housing for the rakyat but it has seemingly been completely irresponsible with the state’s money and resources. Has there been a misappropriation of funds? Or leakage?

“What action is the government going to take as a result of the AG’s Report? Someone has to be held responsible, and I hope that this revelation will not go the way of other past AG’s reports where there is little or no action taken to address the problems or to hold the relevant persons to account.”

Baru said the management of the construction of the new wing of the Riverside Majestic Hotel, under the purview of the Sarawak Economic Development Corporation (SEDC), was also found to be unsatisfactory.

Besides failure to complete despite seven extensions amounting to 758 days, he said the project’s cost was found to have increased by RM8.07 million, an increase of 13.5 per cent.

In addition, he said liquidated and ascertained damages (LAD) were not imposed for work which was delayed by 148, which if paid would have been in the amount of RM2.09million.

“Again, the project cost overrun needs to be explained, and the reason for not imposing the LAD charges.”

Baru said the financial management of the Sarawak Museum and the State Legislative Assembly (DUN) were also found to be less than satisfactory.

“With the building of the new museum complex, it is even more crucial that financial transparency, accountability, and competency be maintained without exception.”

Baru noted that the Malaysian Anti-Corruption Commission (MACC) has announced that it will be studying the AG’s Reports and investigating possible corruption and abuse of power where warranted.

“In all these cases, taxpayers’ money is involved, and the MACC must be thorough in its investigation.

“It is unfortunate that these bodies singled out as being less than satisfactory in performance are or were under the purview of the Chief Minister in his roles as the Minister of Housing and Urbanisation and the Minister of Tourism, Arts and Culture, except for the DUN.”

Baru said it is the even more crucial that investigations be carried out impartially and transparently so that there can be no allegation of cover-ups or sweeping under the carpet.

“The Chief Minister must take steps to reassure the people that the management of the state is in good hands and will not suffer the same fate as these bodies named by the Auditor General.”

Source : The Borneo Post Online by Jonathan Chia,




  1. The thieves already following West Malaysia trend.

    Comment by Salim — August 4, 2017 @ 10:17 PM | Reply

  2. The MACC must also investigate several projects which the Sarawak Housing Development Corporation had signed Irrevocable Power of Attorney with private developers resulting in hundreds if not thousands mixed housing and commercial projects not issued with individual titles because the developers had failed to construct and deliver remaining units. Many of the master titles have less than 20 years left. Are the developers insolvent or whose companies already winded up?

    Comment by Mata Kuching — August 4, 2017 @ 6:37 PM | Reply

    • Sarawakians have the right to know how many parcels of lands owned by Housing Development Corporation were handed over to private developers under Irrevocable Power of Attorney and individual titles were not processed by Land and Survey due to non completion of projects.

      Comment by Awaken Dayak — August 5, 2017 @ 8:26 PM | Reply

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