PAC wants action against KK airport contractor

KUALA LUMPUR: The Public Accounts Committee (PAC) has called for action to be taken against one of the contractors involved in the Kota Kinabalu International Airport (KKIA) upgrading works between 2006 and 2009, which caused part of the cost to balloon over 250%.
According to the PAC report tabled in Parliament today, the Transport Ministry had paid a white knight contractor RM194.86 million to complete a remaining of part of the upgrading work, as compared to the cost paid to the original contractor which was RM53.34 million.
The cost involved in appointing the white knight contractor included civil and structure works (RM155.5 million), AGL and Fire Protection system (RM23 million), Navigation Aid system (RM12.9 million), Communication Aid System and automated Weather Observing system (RM3.46 million).
According to the factors of increase in cost, which was pointed out in the Auditor-General Report 2012, were the increase of prices of goods and new equipment, insurance and mobility cost.
The report pointed out that the upgrading project was divided into Package 1 and Package 2, in which the contractors were WCT Engineering Berhad and Global Upline Sdn Bhd (GUSB).
Both contractors were appointed by the Transport Ministry through direct negotiation.
The report noted that GUSB did not abide by the Environmental Impact Assessment (EIA) report by a consultant in February 2007 by using the barging method to reclaim part of the sea area instead of using the Precision Approach Lighting method, which is environmentally friendlier.
GUSB's services were discontinued on Dec 31, 2012, and a new white knight contractor was appointed which followed the recommendation of the EIA report.
PAC, in the report, had found that the project was poorly planned, and among the problems were not complying with the EIA report.
The report added that the delayed purchase and installation of ILS had caused wastage in the government procurement.