Tue, 16 Oct 2012 06:45:00 GMT | By Chua Chern Toong

AG Report shows improvement, direct negotiation still exists

The annual Auditor-General’s report shows improved performances for most Malaysian government agencies, although several examples of financial mismanagements still existed.

Of particular concern was the revelation that several key projects were handled through direct negotiations, which could have a negative impact on how the public perceives government trustworthiness and could also encourage corrupt practices.

A key example was the Ipoh-Padang Besar electric double-tracking rail project, which initially cost RM12.39 billion, but has now incurred an additional RM3.6 billion, and also caused a delay of 669 days.

The AG’s report noted that the selection of MNC Gamuda Joint Venture Sdn Bhd as the primary contractor was done through direct negotiation, and not competitive bidding.

“The auditor feels the appointment of a contractor without going through competitive bidding will leave the government with limited choices in making a comparison, evaluation and selection of qualified contractors,” the report said.

According to Auditor-General Tan Sri Ambrin Buang, of all the government agencies that were audited for 2011, 111 agencies or 31.4% were given a rating of “very good” , in contrast with 77 agencies (21.6%) in 2010 and 48 (12%) in 2009.