Auditor-General's report: Parliament building upgrade project exceeded target by eight years, cost increased by RM106m

·2-min read
Malay Mail
Malay Mail

KUALA LUMPUR, Aug 3 — The outcome of the project to upgrade the Parliament building cannot be measured as it had exceeded its target completion by more than eight years.

According to the National Auditor-General's (AG) Report's (LKAN) 2021 Series 1 tabled in Dewan Rakyat today, the upgrading and repair project for the Parliament building began in 2011 with an original cost of RM520 million and was supposed to be completed in six years.

However, the final phase of the project is still ongoing with the cost rising to RM626.10 million.

"In conclusion, this project has exceeded the completion target of six years. The first phase started on 2011 and took up to 14 years to complete while the last phase, 2C(ii) is expected to be completed by January 2025 instead of in 2016. Measurement of performance outcome also cannot be evaluated because the last phase is still in progress until 31 December 2021,” said the report.

The report found a total of 171 Variation Orders (APK) and 126 Contract Price Adjustments (PHK) have resulted in increases in contract prices amounting to RM5.78 million (1.3 per cent) to RM447.40 million.

The project's ceiling cost has increased by RM106.10 million (20.4 per cent) from RM520 million to RM626.10 million to cover the scope of work variation in phases 2B and 2C.

Meanwhile, the Value Management (VM) that was implemented in 2012 was less effective and unable to control the cost and implementation duration of the project, and there were delays of between 14 to 90 days to complete the original and addendum to the supply of furniture contract documents.

The report also reported weaknesses in the governance of information communication technologies (ICTs) system development which was found not to be in accordance with the decision of the ICT Technical Committee (JTICT).

"There were weaknesses in the system design specification including the Administrator Module, Members of Parliament Information Module and Attendance Module.

"The ICT components on Assurance, Maintenance and Support Services were implemented together with the ICT system development period.

"Certificate of Completion was issued although the scope of ICT work as per contract has not been completed,” said the report.

LKAN also recommended several actions need to adhere by the government and Public Works Department (PWD) in order to ensure there is no recurrence in the future "PWD needs to ensure comprehensive governance and effective monitoring so that the implementation of the project is successfully achieved in accordance with the Objectives.

"Parliament and PWD must ensure the management of ICT system development is referred to the authorised agencies to maintain the need, the interest and security of the public sector ICT.

"Parliament needs to ensure that assets procured are optimally used and are fully utilised,” said the report.

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