Police paid millions of ringgit in maintenance fees for inactive helicopters - AG Report

The report said that according to the contract, after six months of a helicopter being inactive, the fixed monthly maintenance charge would be reduced by 25 per cent -- from RM38,500 to RM28,875.

An Audit visit to the police's Air Wing Unit (PGU) in Subang in September 2019 found that one of the helicopters -- registered as 9M-PHJ -- had been inactive for 17 months from March 13, 2018, when it was involved in an accident during landing, until August 2019.

However, the helicopter was still charged at RM38,500 after a period of six months from the date the helicopter was inactive, resulting in a total of RM105,875 being overpaid for a period of 11 months from October 2018 to September 2019, the report said.

The report also found that a total of RM3.47 million had been paid for the maintenance of two more helicopters, which had been inactive for more than three years from 2017 until 2019, because the terms of the contract only allowed for a discount to be given to a maximum of three helicopters at any one time.

As such, the audit recommended PDRM to check the contracts in detail before making payments.

Meanwhile, the audit report also stated that the Defence Ministry (MINDEF) did not impose late charges of RM116.54 million after the Littoral Combat Ship (LCS) 1 was delivered 245 days later than the scheduled date.

It said that the company was supposed to deliver the LCS 1 on April 2019 but, as of Dec 31, 2019, it had yet to do so.

The report said that as of June 30 this year, despite the scheduled delivery having exceeded 12 months, MINDEF also did not issue a letter demanding late charge penalty from the company and instead only issued a reminder on the delay on June 14.

According to the report, the delay in the delivery of the LCS 1 as at June 10, 2020 was 435 days, with a fine of RM217.50 million.

The report also found that RM910 million, or 63.8 per cent, in progress payment had been made for the LCS 1 as of Dec 31 last year although the actual work progress was only at 42.7 per cent.

The audit report recommended MINDEF to enforce late payment charges and to take appropriate action against companies or officers for failing to adhere to stipulated departmental needs and orders.