KUALA LUMPUR, April 6 – The Communication and Multimedia Ministry paid three contractors the full amount of RM88.13 million for an incomplete broadband project in East Malaysia. The first series of the Auditor-General’s Report 2014 found that although overall project management was satisfactory, it revealed today that the ministry had paid the sum to Esajadi Sdn Bhd, Celcom Axiata Berhad and Jaring Communications Sdn Bhd, who had only completed 95.2 per cent (890.23 km) of fibre optic network installation in Sabah and Sarawak.
The three contractors have failed to abide by the contract with 45.37 km still incomplete. “Overall project management was satisfactory in terms of budget performance, appointment of contractors through direct negotiation procedures, price negotiations outcome between the ministry and contractors as well as management of testing and commissioning session. “However, the audit has identified several discrepancies in project management.
“Full payment amounted to RM88.13 million was paid to three contractors although the actual distance of fibre optic network connections was 890.23 km (95.2 per cent) compared to 935.60 km as specified in the contract,” it said. The report also said, among others, that there was no evidence of approval regarding the contract period extension for 35 fibre optic network connections and that an appointed contractor did not meet the eligibility requirements set by the Communications and Multimedia Act 1998.