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RM2.88m paid for maintenance works, not as stated in Auditor-General’s Report — Ministry
Posted on : 14 Aug 2017  Source of News: The Borneo Post

KUCHING: The RM2.88 million paid out by Housing Development Corporation (HDC) in 2016 for alleged non-existing paint jobs was in fact the amount paid for maintenance works for two public housing projects; namely 2,372 units of houses at Permyjaya, Miri and 816 units in Taman Dahlia, Kuching.

The permanent secretary to the Ministry of Local Government and Housing, Bakri Zaini, said this was among preliminary findings in the preliminary investigation conducted by the ministry on the shortcomings raised in the Auditor-General’s Report 2016. 

“Works at Permyjaya involved painting works, roof rectification, sanitary plumbing, vent pipe replacement, minor crack repair and miscellaneous works totalling RM2.58 million.

“In the case of Taman Dahlia, Kuching. the work involved rectification of apron slab, perimeter drain repair, re-wiring and electrical works, fascia board replacement, fencing repair and other miscellaneous maintenance works totalling RM0.3 million,” he said yesterday.

He also mentioned that apparently the total amount of RM2.58 million paid for the works also included payment for repainting of 12 units of houses not painted in Permyjaya costing RM11,969.

The 12 units were badly damaged by fire, requiring massive repair works and these repair works were expected to be completed by year-end, he added.

On behalf of the ministry, Bakri also confirmed that Malaysian Anti Corruption Commission (MACC) had started their preliminary investigation on HDC. “So far, HDC has given their full cooperation to both the ministry and MACC,” he said.

HDC has come under the spotlight after the Auditor-General’s Report 2016 released on July 31 disclosed that HDC had paid out RM2.88 million to two contractors for paint jobs which they had not done.

The report also mentioned 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.

It said there were also payments of RM30.40 million made without verification by the officer, while payments amounting to RM20.77 million were unsupported by ‘Payment Certificates’.

Local Government and Housing Minister Datuk Dr Sim Kui Hian had warned on Friday that appropriate action would be taken against officers found guilty of misusing millions of ringgit belonging to the state-owned HDC.