Management of Bintulu Port Authority not up to par

KUALA LUMPUR: The management of Bintulu Port Authority (BPA) was not up to par as some acquisitions were unsatisfactory, and there were weaknesses in direct negotiations and the tender process.

The Auditor General’s 2016 Report Series 2 said the audit conducted in September found weaknesses in procurement planning, including a project worth RM1.247 billion that was approved without thorough research.

Besides that, three procurements worth RM1.45 billion were implemented without receiving a green light. Four acquisitions worth RM1.46 billion were not done through open tender, and direct negotiations were not approved by the Finance Ministry.

The report said BPA’s other weaknesses include direct negotiations, tender process, appointment of contractors and consultants, as well as contract issues.

It said a supplemental agreement worth RM4.58 million was supposed to be borne by another party, and its duration was unreasonable.

BPA also did not attach supporting documents for several payments made to consultants, and developers and managers did not comply with directives by the board of directors to postpone the “supply base” project.

The report recommended the Transport Ministry to provide a Cabinet Paper to get a new direction on the project.

It recommended the ministry to direct BPA’s board of directors to form an internal investigation committee to probe the use of the board of directors’ meeting minutes labelled “No. 7/2016” and board of directors’ resolution dated Dec 8 last year to get support for the nomination of contractors, which was invalid.

If criminal elements were found, BPA should report it to the authorities.

It asked BPA to establish clear terms of reference for the board so that members could perform fiduciary duties effectively, and to review its compliance and monitoring mechanism to reduce misconduct and increase control of its procurement.

Between 2014 and July, BPA managed 721 purchases worth RM1.48 billion.