AG'S Report: Mindef, PWD told to closely monitor contractors in RMAF'S EC725 Infra project

KUALA LUMPUR: The Defence Ministry and Public Works Department (PWD)have been asked to conduct a detailed assessment of the capabilities of contractors undertaking the construction of infrastructure for EC725 aircraft at the Royal Malaysian Air Force Base in Kuantan so that it is completed in time.
According to the Auditor-General's Report 2016 Series 2 which was released today, the relevant parties should constantly monitor the contractors and consultants so that no changes are made which would result in additional costs without first getting approval from the PWD.
At the same time, these parties must also ensure that the wiring and equipment which have been installed/supplied are tested to ensure that they are in good condition so that there is no need for rework.
"The auditing which was done between April and July 2017 found that the objectives of the Infrastructure Construction Project for the EC725 Helicopters at the Kuantan RMAF Base were not achieved as the project was not completed and the contractor's services were terminated on Dec 8, 2016.
"The project management was also unsatisfactory as there were weaknesses which affected its implementation," the report said.
The Ministry of Defence had planned the construction of infrastructure and hangar for EC725 aircraft since 2010 at the same time as the planned to buy the helicopters, for operational, maintenance and stationing purposes.
Twelve EC725 helicopters costing RM1.43 billion were delivered in stages from December 2012 until May 2014.
The project was conducted through open tender and the company which won the tender was Bella Builders Sdn. Bhd. (BBSB) with a contract value of RM108.89 million (value of contract was RM127.29 million after price adjustments).
The contract was for the period from Oct 11, 2011 until March 11, 2013 for partial completion, and Aug 14, 2013 for full completion, and after an extension was approved, the date of partial completion was May 22, 2014 and full completion Jan 31, 2014. However, the project was not completed and the contract terminated on Dec 8, 2016.
The implementing agency is the PWD's Transportation Infrastructure Engineering Division. — Bernama