AUDIT REPORT Several weaknesses have been detected in the construction of the Malaysian Armed Forces Army College.

The Auditor-General's Report 2012 also notes the 8.2 percent increase in the cost of the project, from RM175.3 million to RM190.9 million after three price adjustments up to December 2012.

NONEAdditional works were carried out without the approval of the project implementing agencies, amounting to RM7.29 million, while construction was poor and of an unsuitable design.

"The Defence Ministry should manage the allocation for the Private Financing Initiative (PFI) project by controlling the costs of projects approved by the Finance Ministry," says the report.

The Defence Ministry replied that the Finance Ministry had approved the increase in PFI ceiling of up to RM193 million because the previous ceiling balance was not enough to cover costs.

It was recommended that the Defence Ministry sets up an inquiry committee, as instructed by the Finance Ministry, to identify those responsible for the implementation of additional works which were outside the scope of the contract and did not comply with regulations.

The ministry should also instruct the Army College to list, supervise and monitor periodically the works that are incomplete and of poor quality.

The contractor, Syarikat Sri Tinggi Sdn Bhd, should be directed to repair all defects and damages before the certificate of Completion of Making Good Defects is issued, the report adds.

- Bernama