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Thursday, December 8, 2022

PAC urges MACC to probe another Failed Project, uCustoms by the Government that costs Malaysians RM272.99 million

NewsPAC urges MACC to probe another Failed Project, uCustoms by the Government...

The Public Accounts Committee (PAC) Chairman, Wong Kah Woh had urge the Malaysian Anti-Corruption Commission (MACC) to investigate the failed Ubiquitous Customs (uCustoms) system project by the Malaysian government.

“The MACC should be more aggressive and view the issues raised in the Auditor-General’s Report seriously.”

“The PAC urges the MACC to immediately investigate all the issues which have been categorised as punitive under the report.” he said, as reported by The Star.

This comes after the Auditor-General’s Report 2019 (Series II), which was tabled in the Parliament yesterday (28 September), where it was revealed that payments up to RM272.99 million were made by the Customs Department for a system that is currently not functioning.

Source: Berita Harian

Meanwhile, Wong say the PAC will meet to discuss the findings from the report next month to ensure the proceedings related to incriminating findings will commence.

He added that the parties involved will be the Finance Ministry and Customs Department with regard to the uCustoms project.

Responding to the matter, Auditor-General Datuk Nik Azman Nik Abdul Majid, who was also present at the press conference, said the uCustoms project, which was first proposed in October 2013, had originally cost RM 317.7 million before it ballooned to RM397.3 million.

“However, five extensions of time were given for the project since 2013 with the original cost ballooning to RM397.43mil.”

“The audit found that RM272.9mil in payments were made for the project.” he added.

According to the report, the uCustoms project was supposed to have been completed within 2 years by 25 October 2015.

“A proper feasibility study was not conducted before the uCustoms project was implemented.”

“There were also weaknesses arising from the incapability and inefficiency of the supplier’s personnel, combined with the high turnover rate among senior officers with the uCustoms supplier team.” the report read.

In addition, the report also mentioned that the appointed consultant had failed to play its part as the project management office.

“The weaknesses also involves the payment process, where 13 payment vouchers amounting to RM64.89 million were not attached with complete supporting documents.”

“The sum of RM272.99 million was paid to the supplier and project management office.”

“The project management office has only claimed liquidated ascertained damages (LAD) compensation of RM55,660 to be imposed.”
 
“A notice for LAD amounting to RM3.94 million was issued to the company bearing the registration number 374044-H on December 31, 2020, for EOT 3 and EOT 4.” the report said.

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