Eight-year delay, RM64m losses

Contractors commissioned to build a new jail in Sarawak delivered a shoddy job 11 years later.

PETALING JAYA: The new prison in Kuching was completed after an eight-year delay due to unsatisfactory progress, according to the 2010 Auditor-General’s Report.

The project was originally targeted for completion in three years and three months but eventually took 11 years and two months due to several delays.

This cost the government an additional RM56.11 million or 34 percent more than the original cost which was RM165 million.

Due to the delay, the project eventually had to be downsized from 103 blocks to house 2,665 prisoners and staff members to 65 blocks to accommodate 1,366 prisoners and staffs instead.

The entire new prison project in Kuching on Jalan Penrissen eventually cost the government RM221.11 million.

The project began on May 6, 1997 and was to be completed on Aug 5, 2000.

But by the stipulated date of completion, only 84.3 percent of the work was completed. The deadline for completion was then extended to Sept 30, 2001.

Due to unsatisfactory progress, the project, which was initially awarded to WMM Holdings Sdn Bhd through direct negotiations, had to be terminated in July 2002.

RM64.71 million losses

The contract was then offered to TSR Bina Sdn Bhd through an open tender in 2005.

It took the government two years and seven months to find TSR Bina, the new contractor.

Furthermore, the AG’s report found that due to payment made prior to completion of work, the government had lost a whopping RM64.71 million in the project to WMM Holdings.

The report said that 80 percent of the project’s cost (RM 132.67 million) was already paid to WMM Holdings when it only had completed 41 percent of the project (RM67.96 million) in 2001.

The report said that the payment was made as a result of claims from the negotiator which the government believed to have been “professional” and in line with the work that was completed.

The report also said that no inspection was carried out of the finished work because the Malaysian Prison Headquaters (IPPM) did not have technically competent staff to undertake the job at that juncture.

The AG’s report cited that the IPPM had informed them that the case (involving WMM Holdings) had been taken to court following an investigation by the Malaysian Anti-Corruption Commission (MACC).

Further details of the case were not provided.

However, the report noted that despite having spent close to RM200 million on the project, the auditor-general during its visit in 2010 found many defects such as ceiling leakages, cracked walls, broken tiles on the walls and floors and many others.