AUDIT REPORT Nine procurements amounting to RM651,022 have been made by two Kelantan local councils without going through the proper procurement process, the latest edition of the Auditor-General's Report 2013 shows.

The Kota Baru Municipal Council (PMKB) and Tanah Merah District Council (MDTM) failed to comply with Treasury rules requiring the procurement of supplies and services valued between RM50,000 and RM500,000 to go through a quotation process, the audit report says.

MPKB procured two mobile communication devices costing RM164,704 through direct purchase.

Also, the report found that MPKB's procurements of mobile devices were inconsistent with the officers’ ranking and not in accordance with their eligibility, as fixed by the Treasury.

Likewise, Treasury rules dictate minor repair works costing between RM20,000 and RM200,000 must also go through a quotation process.

In one example given, MDTM granted a project to repair the fence at the local council's football field at a cost of RM96,180 without following the procedure.

The report said this was done by deliberately breaking up the procurement into smaller parcels at lower values, even though they were for the same work, with the supplies as well granted to the same contractor.

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