AUDIT REPORT | The cost to build several "Ladang Sejahtera" projects under the Rural and Regional Development Ministry has ballooned by more than 100 percent.

For example, the cost to build the Ganda Ladang Sejahtera project in Perak had ballooned by 267.3 percent or RM33.01 million from the initial development cost of RM12.35 million.

As for the Chemomoi Ladang Sejahtera project in Pahang, the development cost had increased by 158.9 percent to RM14.13 million from the initial cost of RM8.89 million.

The second series of the 2016 Auditor-General's Report said the cost had ballooned due to the death of trees caused by the unsuitable type of soil, pests and soil erosion.

Due to the allocation deficit for Ganda Ladang Sejahtera, the Rubber Industry Smallholders Development Authority (Risda) had to ask Espek Plantations Sdn Bhd and Risda Plantation Sdn Bhd to use their internal allocations to ensure that the plantations are taken care of.

Additional allocation applied for

Risda, on Sept 19, 2016, had applied for additional allocation from the Rural and Regional Development Ministry for Ganda Ladang Sejahtera until the year 2021.

This means that the cost for Ganda Ladang Sejahtera will increase to a further RM48.70 million or 394.3 percent from the initial cost of RM12.35 million.

"The audit believes that the development of the Ganda Ladang Sejahtera and Chemomoi Ladang Sejahtera are not satisfactory due to the problem of unsuitable soil, which had led to the deaths of 437,393 rubber trees.

In its recommendation, the audit report said both the ministry and Risda must conduct a thorough research on the Ladang Sejahtera projects on both the short and long-term impact in terms of costs.

They must also study the significant factors that had led to the Ganda agropolitan having failed in its objectives.

"The ministry must determine the criteria and specific location for the Ganda agropolitan at the initial development stage, together with the allocation given, to ensure that the project can be built at a strategic location, complete with basic facilities.

"Risda must find more effective alternatives to avoid soil erosion and the problem of pests," the audit report said.