Audit: Istana Budaya yet to receive equipment worth RM6.08 million

KUALA LUMPUR: A total of RM6.08 million has been paid by the Ministry of Tourism, Arts and Culture (MOTAC) to company ACN 611 173 525 for the purchase of equipment for Istana Budaya, but not yet received by the later, according to the Auditor General's Report (LKAN) Year 2020.

According to the report released today, the equipment was not received by Istana Budaya because the supplier appointed by the company had stipulated that delivery of the equipment and services would only be made after full payment had been made by company.

The report also revealed that equipment worth RM4.79 million was received 448 days late after the company's contract was terminated on October 20, 2017 and replaced by company 559113-M, which was appointed to continue with upgrading of the control and automation system at Panggung Sari, Istana Budaya.

In this regard, several recommendations were submitted to Istana Budaya, namely to ensure that the liquidator includes the company in the priority list of the company's creditors for immediate settlement of debts amounting to RM6.08 million.

Apart from that, Istana Budaya must ensure that equipment, worth RM4.79 million, is installed and fully optimised to prevent it from becoming obsolete and unusable.

MOTAC signed a contract, worth RM34.22 million, with ACN 611 173 525 on Nov 10, 2016, for work to upgrade the stage control and automation system at Panggung Sari, Istana Budaya, through direct negotiation.

The contract, which took effect on Nov 15, 2016, was terminated on July 15, 2017 because the company was unable to continue the contract.

-- BERNAMA