Malaysiakini report: ' Deals worth hundreds of millions given via direct talks'

The above captioned subject refers.

2. I would like to refer to the report entitled 'Deals worth hundreds of millions given via direct talks' by Aidila Razak posted on Oct 19, 2012, which initially appeared in your portal under the headline 'Sarawak gives out RM923mil deals via direct talk'".

3. In your earlier report 'Sarawak gives out RM923mil deals via direct talks', several statements are discovered to be inconsistent with the Auditor-General's Report on the Activities of the ministries/ departments/agencies and the management of the government-linked companies - Sarawak State (Auditor-General's Report) as the following:

a. First paragraph "A wholly-owned subsidiary of Sarawak's State Financial Secretary Incorporated awarded contracts worth a whopping RM923.03 million to four firms through direct negotiations". In paragraph 15.4.2.1.b of the Auditor-General's report, it is stated that eight out of 10 projects are done through direct negotiations.

b. Third paragraph "Taking the lion's share was Hock Peng Realty, which was awarded four contracts worth RM822.4 million, or 89 percent of the total contract value." In Table 15.4 of the Auditor-General's Report, it is stated that three projects awarded to Hock Peng Reality Sdn Bhd amounting RM362.43 million.

4. In the final paragraph of the amended report entitled "Deals worth hundreds of millions given via direct talks", it is stated that: "Based on our audited 2011 accounts as at July 2011 , Sarawak Coal Resources gained a profit of RM1.93 million for 2011," the company said." The correct period should be July 2012 as mentioned on page 170, Paragraph 15.4.1.2.e of the Auditor-General's report.

5. I would be most grateful if you could rectify the report promptly.

KHALID KHAN ABDULLAH KHAN is director of audit, Sarawak.