Auditor-General ticks off taxman over wasteful spending

The Inland Revenue Board (IRB) wasted more than RM9 million in various costs during the relocation of its processing centre from Pandan Indah to Bangi, revealed the 2012 Auditor-General Report.

Besides spending RM4.7 million in rental costs, the IRB spent an additional RM505,600 from October 2011 to February 2013 on utility bills and for hiring security firms.

The report found that the IRB paid RM529,733 in consultancy fees to four firms, and described the payments as wasteful because the reports issued by these firms could not be used.

An additional RM3.27 million was incurred in the course of eight Job Change Orders which had not been approved by the Economic Planning Unit.

The IRB's new processing centre in Bangi, built on a 3.1-acre land bought from the Selangor Economic Development Corporation, was approved in the 9th Malaysia Plan.

Construction of the RM57.6 million facility was awarded to S.N Akmida Holdings Sdn Bhd, but the Auditor-General Report stated that the project's management was less than satisfactory.

One of the weaknesses highlighted in the report was the delay in the project's completion by 643 days.

Although the project completed in October 2011, the contractor had failed to get safety approval from the Fire and Rescue Department.

The design of the building and the quality of work was also not satisfactory, the report said.

The IRB also took nine months to decide where its customer service centre should be located at the new facility.

The Auditor-General Report advised the IRB to plan properly in preparing its project brief.

It also urged the IRB and the Works Department to ensure the main contractor be held responsible for overall planning, design and management.

The Works Department should also take action against the main contractor for failing to supervise the project properly, which resulted in substandard and shoddy workmanship, the report added.