AG's Report 2015: Weaknesses identified in MMDC's dredging works

PETALING JAYA: Some weaknesses were identified in dredging works done by the Malaysian Marine & Dredging Corporation Sdn Bdn (MMDC) according to the 2015 Auditor-General’s Report (Series 2).
Among the weaknesses revealed were the appointment of MMDC for the dredging works without proper justification and without the Cabinet’s approval; dredging project in Kuala Perlis was not done in accordance to its targeted depth due to sedimentation prior to project completion; and to make things worse, the approval for the dumping site took 187 days.
“There is also delay in work completion due to late supply of vessels and machinery but at the same time, the supplied vessels and machinery were not in good condition as it was old and often broke down and this shows that MMDC’s commitment was unsatisfactory.
“Also, the use of foreign vessels was not in line with the Concession Agreement objective to ensure local equipment were fully utilised by MMDC,” it said.
The report also noted that the implementation of equal percentage method for each block was not suitable as MMDC prioritised dredging activities in shallow waters compared to critical areas.
“Although the Terusan Bagan River project was terminated by mutual agreement and RM5.77 million was spent by the government, the project’s objective was not achieved,” it said.
To overcome the weaknesses highlighted, the report suggested that the Transport Ministry comply with the Finance Ministry’s instruction by submitting the Cabinet Paper pertaining to the appointment of dredging concession.
“The Transport Ministry or Marine Department Malaysia (JLM) should review its method on equal pay rates for each dredging block by imposing rates based on critical depth and complexity factors.
“At the same time, JLM should also ensure suitable vessels were used by MMDC for dredging work to avoid frequent breakdown and that dredging material could be transported effectively,” it said.
The report also recommended that it is JLM’s responsibility to ensure all navigation channel within the scope of work are free from any obstacles so that the project would not be delayed.