KUALA LUMPUR: A total of RM499.18 million was paid without confirmation of the Performance Indicator (KPI) report for the payment of maintenance cost claims for the Government Integrated Radio Network (GIRN) project, implemented through a public-private partnership between the government and concessionaires, according to the Auditor General’s Report Year 2020.
The report also found that the rebate deduction amounting to RM2.5 million was not made although the two KPI parameters, namely the handover between cells (data) and data throughput did not achieve by the concessionaires.
The report also revealed that the insurance claim made by the concession company amounting to RM23.51 million should not be made while the payment of RM150.19 million on other expenses for maintenance services could not be confirmed.
“Based on the scope and sample of the audit, there were weaknesses in contract management related to the payment of claims for the maintenance cost of the GIRN project.
“It happened because there was no thorough review of the agreement clause and supporting documents submitted before the payment was made. This has resulted in irregular payments amounting to RM499.18 million,” according to the report that was released today.
In this regard, the report has recommended that the National Security Council (MKN) that is responsible for making payments for the work and services performed to, among others, ensure that the confirmation of concession claims is made based on the clause of the agreement.
It said MKN also needed to take action by enforcing the clauses of the existing agreement and improving the terms of the agreement to prevent leakages.
“In addition, MKN needs to ensure that contract administration and monitoring is carried out efficiently and carefully to safeguard the government’s interests as well as review payments made to concessionaires that do not comply with the agreement clause for the purpose of deducting claim fees,” said the report. — Bernama
