999 ‘blared’ with lousy management

The emergency response service is tainted with irregularities and lack transparency in its financial management, reveals the AG’s report.

PETALING JAYA: The Malaysian Emergency Response Services 999 Project (MERS 999) under the Communications and Multimedia Ministry (KKMM) which cost RM801.55 million was wrought with poor management, revealed the Auditor-General’s (AG) report today.

“Audit findings revealed that the overall project management was particularly poor in contract compliance, contract administration and project monitoring,” read the AG’s report which was released today.

One of the shortcomings was the late execution on the development and installation of the MERS 999 system in 16 sites; and 34 sites were operated later than the timelines stipulated.

The report also noted the increase in the number of non-emergency calls and the continuous occurrence of drop calls.

MERS 999 was implemented in May 2007 under the Energy, Water and Communications Ministry with the objective of providing a comprehensive and integrated emergency line services using the number 999; in line with the 1Malaysia 1Number concept.

In 2009, the communication function was consolidated under KKMM, then known as the Information Communication and Culture Ministry and the project continued under the new ministry.

Telekom Malaysia Berhad (TM) was appointed through direct negotiations to develop the project with a total cost of RM801.55 million.

However, the AG report said that the appointment of local and foreign consultants did not comply with the financial regulations and the consultancy service fees exceeded the prescribed rate by RM1.92 million.

“The consultancy service fees amounting to RM25.88 million was paid in lump sum without supporting details on the services provided,” said the report.

The report also revealed that the cost of reimbursement on consultant services amounting to RM480,000 was paid in a lump sum without being supported by receipts.

Incomplete supporting documents

“In another instance, the project management fee was overpaid amounting to RM295,036.

“Also, payments for cost of conducting workshops amounting to RM3.43 million, courses conducted amounting to RM1.90 million and overseas trips amounting to RM3.34 million were made without complete supporting documents,” the report read.

The report noted that workshops and courses for the contractor’s personnel totaling RM3.27 million were paid by the government.

“Incentive payments to Master of Trainers (MOT) amounting to RM295,094 that should be borne by TM, was paid by the government,” it said.

The report then recommended the ministry to ensure the MERS 999 system operates according to set schedules, in order for the objectives to be achieved.

It also advised the ministry to ensure that the appointment of consultants, management of training, overseas trips and management of promotion and publicity are implemented in a transparent manner and in accordance with financial regulations.

The report also urged for a Committee of Inquiry to be set up and all transactions/claims/payments made under the MERS 999 Project be reviewed.

“All improper payments arising from TM’s discrepancies must be recovered and appropriate actions should be taken against the identified officers who committed the offence.

“The various improper payments should be recovered from TM by the Ministry after investigations are made,” he said.