Company got RM55m by double billing gov't for prawn farms

A company got over RM55 million by double billing the government for the same prawn farming projects, the Public Accounts Committee (PAC) revealed.

Hannan Corporation Sdn Bhd (HCSB) had acquired funding for the two aquaculture projects in Kerian, Perak from the Northern Corridor Implementation Authority (NCIA) and through the National Key Economic Area (NKEA)

The shrimp farms are known as the Selinsing Aquaculture Complex (KAS) and Pulau Gula Aquaculture Complex (KAPG).

PAC chief Hasan Arifin said HCSB had informed the NCIA that its projects' cost was RM150 million, and the two entered into a contract in January 2011.

Later in Octber 2011, the company inked a deal with the NKEA saying the projects cost RM353 million.

"It was found that the company made claims for several of the same components from the NCIA and NKEA," Hasan said in a statement today.

To date, he said HCSB had received RM25 million from NCIA and RM31 million from the NKEA.

However, he noted that the company did not have the expertise or experience related to the aquaculture industry.

Hasan said the PAC has called for the audit department to get a detailed report about the project.

The committee also backed a proposal by the audit department that a third party be appointed to review the project costs claimed by HCSB.

HCSB's prawn farms were part of a government initiative to boost high quality prawn production to 100,000 metric tonnes by 2020.- Mkini