MACC to study AG’s Report
Report: BPA did not obtain approval from MoF for four projects worth RM1.4 bln that were directly negotiated
KUCHING: The Malaysian AntiCorruption Commission ( MACC) would study the Auditor-General’s Report on Bintulu Port Authority ( BPA) to determine if corruption or abuse of power had taken place in its decision-making process.
MACC deputy chief commissioner (operations) Datuk Seri Azam Baki, when contacted yesterday, said the revelation in the AG’s Report is ‘ news to them’.
“This is news to us, but MACC will look into this issue to ascertain whether there is an element of corruption or abuse of power by any authority involved in making decisions,” he told The Borneo Post.
On whether MACC would be sending a team to Bintulu to further probe the matter, Azam reiterated that they needed to study the report first.
He stressed that MACC had taken action based on the AG’s Report in the past.
“Yes, previously we d id investigate many reports as long they are under our jurisdiction,” he pointed out.
According to the AuditorGeneral’s Report 2016 Series 2 released on Monday, BPA did not obtain approval from the Ministry of Finance ( MOF) for four projects worth RM1.4 billion that were directly negotiated.
The four items that failed to undergo an open tender were the construction of the supply base dock worth RM 1.247 billion; project consultation at RM175.3 million; environmental monitoring, compliance reporting and coastal erosion monitoring at RM15.42 million; and consultancy, management and monitoring
This is news to us, but MACC will look into this issue to ascertain whether there is an element of corruption or abuse of power by any authority involved in making decisions. Datuk Seri Azam Baki, MACC deputy chief commissioner (operations)
services worth RM29.02 million.
There were also no detailed plans before contracts were issued to Muhibbah Viccana Joint Venture ( MVJV) on Dec 16 last year.
“The auditors did not find evidence that Bintulu Port Authority requested permission from the Finance Ministry to conduct the procurement exercise through direct negotiation,” the AG’s Report stated.
The report mentioned that in all four items, letters of intent as well as details of the negotiations were missing and the decision paper carried a sole signature by the general manager rather than all members of the procurement board as required.
“Bintulu Port Authority’s failure to follow price negotiation procedures exposes them to the risks of power abuse and mismanagement.
“Without market research and cost estimates, Bintulu Port Authority was unable to ensure that this project had the best value for money,” it said.
The BPA is a federal statutory body under the Ministry of Transport. Inaugurated on Aug 15, 1981 under the Bintulu Port Authority Act 1981.
The authority handles responsibilities covering the development, administration, marketing and provision of adequate and efficient port services.
The report also stated that consultancy fees were not supported by complete documents, and that instructions by the Board of Directors to postpone the supply base project were not complied with.
It went on to say there were also elements of fraud in the preparation of the minutes of a meeting for a tender, and resolutions in a letter relating to it had inf luenced the Transport Minister to approve the appointment of MVJV – a joint venture company between Muhibbah Engineering ( M) Bhd and Viccana Sdn Bhd – as contractor.
“An audit found there were two sets of minutes of separate meetings provided by BPA general manager and the meeting’s secretariat for the 1/2016 Board of Directors meeting.
“During the No. 1/2016 Board of Directors meeting on March 29, 2017, the Board of Directors had agreed that the minutes provided by the secretariat is more accurate and the meeting agreed to approve the minutes.
“The audit on the minutes of the meeting provided by the general manager found the meeting’s decision on the MVJV appointment was contrary to the decision recorded by the meeting’s secretariat, namely by the Planning and Commercial manager,” said the report.
The report added MVJV’s appointment letter sent to the Transport Minister was only signed by three directors – the board’s chairman, deputy chairman and general manager – while eight board members were present at the meeting ( Board Meeting No. 7/2016).
To overcome the weaknesses, the report said, it was suggested that the Ministry of Transport instruct the BPA board of directors to conduct a detailed investigation and report to enforcement agencies if there were criminal elements.
Besides that, the ministry should order BPA to review the compliance and monitoring mechanism to avoid any misconduct in its internal procurement management, it added.