KUALA LUMPUR – A total of RM7.8 million was paid in liquidated ascertained damages (LAD) for the 1,829 days of the works at the Sg Kelantan and Sg Terengganu basins.
In its report, the Public Accounts Committee (PAC) disclosed that the daily charges for LAD amounted to RM4,259.52, which were offset through deductions from the contractor’s progress payments.
Meanwhile, RM6.3 million was paid in LAD for the 1,836-day delay in completing the Sg Pahang basin works. The daily LAD charge for the project amounted to RM3,441.60.
It was reported that the Sg Kelantan and Sg Terengganu basin projects were given five approvals for extension of time (EoT), totalling 529 days until October 23, 2022, and nine EoTs were granted for 880 days until October 31, 2022, for the works on the banks of Sg Pahang.
The EoTs include exceptions given due to the movement control order (MCO) during the Covid-19 pandemic.
In several responses to the auditor-general, the Irrigation and Drainage Department said the extension of time was due to the contractor facing several issues, including equipment firmware problems, the MCO and the closure of 3G coverage by the Malaysian Communications and Multimedia Commission.
Earlier today, the PAC presented a report on the National Flood Forecasting and Warning Programme (PRAB), which is under the Energy Transition and Water Transformation Ministry, at the Dewan Rakyat.
The report follows the findings of the auditor-general published last November, which highlighted several shortcomings in the programme.
These include the failure to construct and upgrade 10 stations and the non-installation of 13 hydrology equipment valued at RM0.77 million.
The committee recommended seven follow-up resolutions during the January 16 proceedings by calling witnesses from the ministry, the Drainage Department and METMalaysia.
The PAC found that the upgrade from 3G to 4G under the National Digital Infrastructure Plan caused data-transmission issues from stations to gateways, exceeding three consecutive months due to the PRAB contract using only the 2G or 3G networks.
The PAC also gave the Energy and Water Ministry and Drainage Department a two-month window before their return for follow-up proceedings, allowing the committee to receive updates on the actions taken regarding the recommendations provided. – March 20, 2024