UTM lab project delayed, hindering use of equipment worth RM20.6m

KUALA LUMPUR: The delayed construction of the sub-critical water treatment system for biomass and waste biomass (SCW) lab project overseen by Universiti Teknologi Malaysia (UTM) resulted in RM20.6 million worth of equipment not being used within the stipulated time.
According to the Auditor-General's Report 2016 Series 2 tabled in the Dewan Rakyat today, the project contractor, UTM Holdings Sdn Bhd (UTMH), needed to complete the SCW project within 16 months by Nov 14, 2016, with the project worth RM23 million located in the Pagoh Higher Education Hub (HPTP), Johor.
The report said UTM had received a grant of RM25 million from the Education Ministry in 2015, with RM23 million allocated for the SCW lab project and the balance of RM2 million for the Malaysia-Japan International Institute of Technology (MJIIT) to carry out research.
"On Nov 23, 2016, nine days after the original date of completion of the project, Nov 14, UTMH had asked for an extension of time (EOT) from UTM to complete this project within 330 days until April 28, 2017.
"However, as at April 30, UTMH had still not received approval for EOT from UTM, and based on the work progress report on last April 3, the SCW project for the production of organic fertiliser from the recycling of food waste, was still not completed," it said.
The report said the delay in completing the project had resulted in the SCW equipment received from the supplying company on July 19, 2016 not being used.
"A physical inspection conducted last Sept 22 found that UTMH had kept the SCW in two cabins located at an open space near the HPTP lab building site and equipped with a generator and air-conditioner each to avoid damage, and also watched by a security guard.
"This shows that UTMH had to bear additional costs to keep and watch over the SCW equipment," it said.
Meanwhile, on the German-Malaysian Institute (GMI), a limited company by guarantee which was established on Sept 1, 1992, the report said 1,729 students had not settled their study fees amounting to RM3.25 million up to December 2016.
The audit found that for 2014 until 2016, the actual total fee collection was RM11.48 million, which was 48.1% of RM23.85 million which should have been collected.
"The big difference is caused by, among others, delay in approving sponsorships by Mara. Based on interviews with officers from the Finance Division, the delay was due to the ability of the students to only pay for their study fees in the third semester," the report said.
The GMI had set the study fees for a diploma programme at the Industrial Electronics and Production Technology Department at RM4,000 to RM4,830 per semester, bringing the total sum to a maximum of RM28,980.
A fee of RM7,000 and RM10,000 per semester is charged for General Pre-Studies (GPS), depending on the duration, with the maximum amount at RM40,000. —Bernama