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KL ATCC: Transport ministry violates financial regulations - Audit report

04/08/2022 02:17 AM

KUALA LUMPUR, Aug 3  (Bernama) --  The Ministry of Transport’s (MOT) decision to administer the Kuala Lumpur Air Traffic Control Centre (KL ATCC) project contract in a hybrid manner does not guarantee that the government’s interests are always protected and violates the financial regulations in force.

According to the Auditor-General’s Report 2021 Series 1, the weakness caused the government to bear costs that should have been borne by contractors and consultants, and the payments were made before the service was provided. 

 “The report found that the project was not handled efficiently, reflected in the weakness of EOT (extension of time), maintenance and ICP (industry collaboration programme),” it said.

It also said that weakness was also found in the physical security aspect of the building, as well as systems that could pose a risk of physical and system intrusion if not improved immediately.

 To overcome the weaknesses raised and to ensure the mistakes are not repeated in the future, the Auditor-General has proposed that the MOT review all the contract terms to ensure that the interests of the government are protected.

“MOT and CAAM (Civil Aviation Authority of Malaysia) need to ensure that contractors carry out all the scope of maintenance service perfectly, and impose appropriate penalties/fines,” it said.

It also recommended that the MOT expedite the process of gazetting the new KL ATCC as a KLTL (protected area and protected place) so that it is fully protected in line with its vital role in the country's civil aviation. 

 In addition, MOT and Technology Depository Agency Berhad, under the Finance Ministry, must ensure that the implementation of ICP goes as planned and that the implementation objectives are achieved as the government wishes, said the report.

It said that the new KL ATCC, which commenced operations on Aug 31, 2021, was completed after five-time extensions, involving 898 days or more than two years. 







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