AUDIT REPORT The Auditor-General's Department in its quarterly report has described the construction of the RM348 million Paya Peda dam in Besut, Terengganu as unsatisfactory following its development stage not being completed in the planned period by 18.5 percent.

The report also rapped the contractors for their workmanship, citing it may not have the experience to undertake a major project, and did not follow the recommendations set in the Environmental Impact Assessment (EIA) report.

It further rapped the Agriculture and Agro-based Industries Ministry for overpaying a consultant land surveyor company by more than RM500,000.

In its report, it said the Paya Peda dam had been proposed in 1995 and was only implemented under the Ninth Malaysian Plan for domestic and agricultural use, where it would fill the needs of the Besut district until 2050 as it can store 220 million cubic metres of water.

T

he project commenced on June 1, 2010 and was to be completed in November 2013. A joint-venture consisting of JAKS Resources Berhad and Pembinaan Sujaman Sdn Bhd was appointed to undertake the project at an initial cost of RM333 million.

Following a visit by the Audit Department between July and September 2013, it was found that the development stage of the project was just 65.12 percent completed compared to a planned 83.61 percent.

The report states the delay could have been avoided if the contractor had tried to implement the project as planned, as well as the appointment of a right and proper contractor who has the experience and knowledge to build a large-scale project.

On the non-compliance of the EIA - it noted that tests for mineral arsenic were not done, and there was improper management in used oil. It noted that arsenic mineral was important as it can bring negative impact and is detrimental to public safety.

In its report, the auditor-general noted that the RM526,026 excess payment to the company that carried out the land survey is in the process of being returned. An initial sum of RM150,000 had been paid while the remainder will be paid in 18 instalments.

In the ministry's reply, it said the consultant for the project issued several reminders to the contractor over the delay and it is due to the weakness in the project management. It states that as of December, the project is as at 74.54 per cent which constitutes a delay of 4.72 per cent.

The new date of completion has been moved from Nov 2013 to June 16, 2014.

For the Public Works Department, the AG noted a three-year delay in the completion and upgrading of the 48 km Alor Setar-Kuala Nerang-Durian Burung, road.

The project was offered to HCM-MOLEK JV via direct negotiations at a cost of RM246.2 million which was fully completed by Oct 28, 2012.

The AG found the delay requiring four extensions due to land acquisition, and the shifting of utility facilities like telecommunications and electricity cables.

Apart from this, the AG report also found a delay in the completion of Politeknik Banting.