They comprise two armed forces’ quarters projects, a Galeria Perdana upgrade project, a PPR project and two firefighters’ quarters projects in Sabah.
The six projects comprised two armed forces’ family housing projects, the Galeria Perdana upgrade project in Langkawi, a PPR housing project, and two firefighters’ quarters projects in Sabah, Bernama reported.
The RM100 million Joint Task Force 2 family housing project at Kukusan Camp in Tawau, Sabah, was originally scheduled for completion in July 2024 but achieved only 28% physical progress as of Dec 31, 2024.
Its contract was terminated on May 23, 2025.
The project under the defence ministry was granted two extensions of time totalling 418 days before it was terminated because of the contractor’s poor financial management and failure to carry out the work, bringing site activities to a halt.
The report said the public works department (JKR) had prepared tender documents as of July 30 this year for the appointment of a new contractor to complete the project, and the economy ministry approved an additional allocation of RM3.9 million on Aug 6.
The RM63.25 million air force base family housing project in Labuan was granted four extensions totalling 467 days up to 2025, followed by two additional extensions totalling 410 days in 2026, with the completion date extended to Nov 17.
As of July 30, physical progress stood at only 51% against the scheduled 54%, with delays attributed to factors such as labour shortage and the need to source raw materials from outside Labuan.
The RM20.4 million contract to upgrade Galeria Perdana in Langkawi was terminated on Sept 23, 2024, after four extensions totalling 192 days had been granted. Liquidated and ascertained damages of RM440,000 were imposed for a 136-day delay.
The audit found that the project was handed over to JKR in January 2025 for further action, while the estimated cost of completing it increased by RM36 million to RM56.4 million. The tender process for appointing a contractor to complete the project is expected to be conducted in February 2027.
Meanwhile, all 67 units under the RM23.7 million PPR projectat Kampung Selagon in Beaufort remained unoccupied as of July 2026 because of structural damage caused by ground movement. The project was completed in 2017.
Thirteen units suffered severe damage, while a RM2.72 million contract for the demolition and reconstruction of eight units and repairs to five others was terminated on March 11, 2025, when physical progress stood at only 15%.
The RM14.39 million project to rebuild the Semporna firefighters’ quarters was also terminated on March 11, 2025, after five extensions totalling 1,164 days had been granted. Physical progress was only at 25%, with RM2.83 million spent.
The project was terminated bcause of the contractor’s financial incapacity, failure to carry out work according to schedule, and weaknesses in project management and monitoring.
A retender was advertised in June 2026, and the project is currently at the tender evaluation stage.
The RM6.85 million project to build the Merotai fire and rescue station and quarters was terminated on Nov 5, 2025, despite having achieved 96.6% physical progress. Seven extensions of time totalling 1,075 days had been granted. - FMT
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