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Auditor-General's Report 2007: 'Smart' tunnel contractor taken to task |
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Saturday, 30 August 2008 09:49am |
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©New
Straits Times (Used by permission)
KUALA LUMPUR: The Auditor-General's Department has unearthed
a spate of unethical practices by the contractor who built the Stormwater
Management and Road Tunnel (Smart).
Auditor-General Tan Sri Ambrin Buang highlighted four cases
where testing and accreditation certificates were issued for equipment before
the actual testing was carried out. The report also indicated 10 other instances
where equipment that had failed testing were also issued with certificates.
"This practice not only contravenes the contractual terms but is also
unethical," Ambrin said.
The report also raised concerns over the contractor's delay in handing over the
operations and maintenance manual and emergency response plan, which Ambrin said
were vital references in emergency cases.
He said the joint-venture contractors, MMC Engineering Group Bhd and Gamuda Bhd,
were also contractually bound to provide the documents to secure the certificate
of fitness for the RM1.93 billion project.
Another issue raised was the delay in upgrading works of
Sungai Kerayong, for which the Department of Irrigation and Drainage (DID)
approved an additional RM113.90 million.
Ambrin said upgrading works were 46.9 per cent behind schedule, despite the
government's RM58.01 million payment to the contractor, Kumpulan Sakata Sdn Bhd.
The delay has forced the DID to use a temporary pump at Sungai Kerayong's
outfall to overcome the overflow at the Taman Desa storage pond, which holds
excess water channelled from Sungai Klang.
Ambrin said the Sungai Kerayong upgrade, handled by Kumpulan Sakata, should have
been done in tandem with the development of the Smart tunnel to ensure it could
operate at optimum capacity.
The government was also urged to gazette the Kampung Berembang holding pond and
Taman Desa storage pond as flood mitigation reserves to ensure the areas were
not used for development that could affect the tunnel's operations.
Natural Resources and Environment Minister Datuk Douglas Uggah Embas, in his
reply to the points raised in the report, said testing and accreditation was
completed and endorsed by consultants on Sept 19 last year.
He said the certification was issued by the consultants based on the agreement
between the contractor and the consultant and differs from the terms and
requirements under the contract cum concession agreement.
On the operations and maintenance manual, he said the contractor has appointed a
consultant to prepare and complete a designer's operation and maintenance manual
and had promised to submit the document by Nov 11.
Douglas also justified the installation of the temporary pump, which he said was
necessary to control water levels at the Taman Desa storage pond until upgrading
work on the Sungai Kerayong was completed by next year.
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