Three depts failed to comply with quotation requirements - AG report

Three government departments were found not complying with contract requirements in procurement quotation, according to the Auditor's General Report 2019 Series 1.

Based on the report, the Marine Department, Prisons Department and two polytechnics were found failing to ensure compliance, including contract specifications and conditions, official contract and payments.

The report said the supply of safety attire for the Marine Department's Maritime Transport Training and Safety of Navigation Division totalling RM47,418 for 100 pieces of clothing, did not comply with the agreement's specification.

For the quotation of supplying and delivering spare parts for oil spill containment equipment worth RM187,160, the audit found that besides late delivery, the equipment supplied was also not sent to the specified location.

Meanwhile, the audit conducted on price quotation in Kluang Prisons found elements of price-fixing that the company which took part and succeeded in one of the offer for food supply quotation was found to be the same company providing another bid based on its address and the Letter of Acceptance of Tender was received by the same individual.

As for the Prisons Department headquarters, a location inspection carried out on Aug 21, 2019, failed to locate three kiosk units worth RM18,000.

"Audit found this had happened because there was no thorough physical inspection by the officers concerned on the completed works before the payment was processed. However, the payment process was made according to the architect's validation," the report said.

Meanwhile, audits on two polytechnics found that a number of payments, totalling RM176,763.80, have been made before the contracts were signed.

These involved two contracts in Nilai Polytechnic totalling RM165,865.80 and three contracts in Ungku Umar Polytechnic totalling RM10,898.

Therefore, the Auditor-General recommended that the respective departments impose a fine or payment deduction for the contractors' failure to supply the procurement properly.

-- BERNAMA