PARLIAMENT The Public Accounts Committee (PAC) has identified negligence as the cause of improper payment of RM526,000 of public fund made to a consultant for the RM348 million Paya Peda Dam project in Besut, Terengganu.

The “careless” Agriculture and Agro-Based Ministry officer was let off the hook with a warning, while the consultancy firm Jurukur Jitu Runding, which received the overpaid amount, had repaid it in September 2014.

According to a copy of the PAC report on the Paya Peda Dam, which was tabled in the Dewan Rakyat today, the officer was confused with the calculations.

This was because the officer was not directly involved in the supervision of the project, for which payment had been made earlier based on Jitu Runding' s invoice.

"Improper payment should not had happened, but it was allowed to happen. This was due to the negligence of the officer.”

The officer is attached to the Irrigation and Agriculture Drainage division of the ministry.

The report also criticised Jurukur Jitu Runding for showing lack of integrity for receiving the overpaid amount.

"PAC had found administrative weaknesses in issuing the contract. The project should be continued with emphasis on good governance and project quality," it said.

The government was urged to learn its lesson to prevent a recurrence of such problem in other projects.

The PAC's probe was the outcome of the 2013 auditor-general report on the dam project, which was tabled in Parliament on April 7, 2014.

The auditor-general's report has described the dam as unsatisfactory because its development stage had not been completed in the planned period by 18.5 percent.

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

The auditor-general also noted that the RM526,026 excess payment made 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.

The project commenced on June 1, 2010 and was to be completed in November 2013. The new date of completion has been moved from November 2013 to June 16, 2014.

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.

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 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, according to the auditor-general's report.

PAC also urged the government, particularly the treasury, to improve its management and practices in direct negotiation procurement, and to take into the consideration possible risks due to their 'lack-accurate' decision.

"The government needs to continuously practise value management.

"Stern action needed to be taken against the contractor for causing a delay in the project," said the report.