KUALA LUMPUR – The River of Life (RoL) project, which was supposed to breathe new life into the areas near Sg Gombak and Sg Klang in the city centre, has come under the microscope after it failed to meet its objective.
In the Auditor-General’s Report 2/2024 presented in the Dewan Rakyat today, the RoL project was highlighted as one of the three significant issues, alongside weaknesses in managing government projects.
Others were the management of broadband and telecommunications network infrastructure strengthening programme, as well as projects under the East Coast Economic Region (ECER).
In the attached reports, the National Audit Department indicates that the RoL projects are unlikely to be completed successfully this year.
As of July 2023, 12 projects remained in the pre-implementation stage, eight were under implementation, and contractors had not been appointed for two projects following termination of previous contracts.
Furthermore, the objectives of RoL initiative remain partially unmet, specifically in achieving the goal of enhancing water quality in the river to Class IIB standards, suitable for recreational activities involving direct contact with the water.
Delays in completing three projects and the cancellation of a sewerage project have contributed to an estimated cost overrun of RM234.72 million.
Additionally, beautification efforts along 2.2 kilometres of Sg Gombak were not undertaken.
On the management of the broadband and telecommunications network infrastructure strengthening programme, the report stated that the goal of expanding high-speed Internet (fibre) coverage and connectivity in rural areas through government financial allocation has not yet been fully achieved.
“A total of 28 out of 87 broadband alignments (Broadband for General Population – BBGP project area) in Sabah and the Peninsula, worth RM53.60 million, have not been subscribed to or used since their completion in 2013 and 2017.
“Part of the infrastructure is idle, cable line connections are disconnected, and equipment is damaged. A total of 337 out of 597 schools still use broadband or satellite technology with limited speed, even though fibre technology has been provided under the Point of Presence (PoP) Phase 1,” according to the report.
Regarding the management of projects under the ECER, the report stated that 37 out of 43 industrial plots were not filled with investors for the Tok Bali Integrated Fisheries Park Project (TBIFP), the Malaysia-China Kuantan Industrial Park (MCKIP 3), and the Kertih Biopolymer Park (KBP) Phases 1 to 3.
“Additionally, infrastructure such as the Animal Production Unit (APU), storage, and workers’ housing worth RM4.03 million at the Commercial Goat Farm Development Project site in Ulu Tersat, Terengganu has not been used since 2011,” it said.
The report highlighted that 37 out of 43 industrial plots allocated for projects under the ECER, including the Tok Bali Integrated Fisheries Park Project (TBIFP), Malaysia-China Kuantan Industrial Park (MCKIP 3), and Kertih Biopolymer Park (KBP) Phases 1 to 3, remained vacant without investors.
Additionally, infrastructure investments amounting to RM4.03 million, such as the APU, storage facilities, and workers’ housing at the Commercial Goat Farm Development Project site in Ulu Tersat, Terengganu, have been idle since 2011.
The Audit-General Report highlighted audits of nine projects across 11 ministries, totaling RM41.97 billion in costs.
The audit covered projects of federal government ministries, and departments as well as federal statutory bodies, said Auditor-General Datuk Wan Suraya Wan Mohd Radzi today.
The scope of the audit included projects implemented during the Ninth Malaysia Plan (9MP) to the 12MP.
In the report, she highlighted several weaknesses in the implementation of government projects, stemming from factors like inadequate monitoring or supervision by relevant parties, lack of coordination among agencies, incomplete databases, and deficiencies in policies and procedures.
“These weaknesses result in programmes, activities, or projects not being completed within the set period, substandard work quality, increased costs, and the government not receiving value for the money spent,” she said in a statement.
Wan Suraya said Audit-General Report 2/2024 was tabled in Parliament after obtaining consent from Yang di-Pertuan Agong Sultan Ibrahim.
It was the second Audit-General Report presentation this year, following the presentation on March 6.
She said that, in addition to reports on the activities of federal government ministries, departments and federal statutory bodies, Audit-General Report 2/2024 also covers reports on the management of federal government companies.
She also said that a total of 64 audit recommendations were submitted in Audit-General Report 2/2024 to be implemented by ministries, departments, agencies, and government companies audited at the federal level.
She added that the audits conducted by the National Audit Department had a positive impact through corrective and improvement actions implemented by the government upon receiving the Audit’s warnings.
“Following up on audits from Audit-General Report 2020, 2021, and 2022, through the Auditor General Dashboard (AGD) portal, it was found that the government has recovered refunds, including penalty claims, outstanding rent, and collections of Liquidated Ascertained Damages (LAD) estimated at RM100 million until the second quarter of 2024,” she said.
In related developments, Wan Suraya said that the department will implement the Digitalisation of National Audit Department services from July 2025, adopting inclusive and sustainable auditing techniques, methodologies, and approaches to become a regional leader in digital auditing.
She added that among National Audit Department’s initiatives is the use of artificial intelligence (AI) technology, including drones and remote auditing, as well as advanced data analytics tools to identify risks, internal control weaknesses, or red flags related to data or information obtained.
“Through the National Audit Department, all information related to auditing, human resources, and Audit-General Report will be integrated to produce accurate and timely outputs,” she said. – July 4, 2024