A pole platform was supplied by a company to the Miri Industrial Training Institute (ILP) in Sarawak at a cost of RM30,510 while similar equipment was bought by the ILP in Sandakan and Kepala Batas for RM1,600 and RM1,240, respectively, according to the auditor-general.
The Auditor-General’s Report of 2008 says the prices, besides being vastly different, were also way above the market price, indicating that no market research was done.
This was among the drastic weaknesses identified by the auditor-general’s department in the management of equipment at three types of training institutions – ILP, the Advanced Technology Training Centre (ADTEC) and the Japan-Malaysia Technical Institute – under the Manpower Department of the Human Resources Ministry.
“The prices offered by the suppliers were not scrutinised, leading to vast differences in the prices for similar equipment among the ILPs,” the report says.
It also says that several pieces of equipment purchased were not utilised and were procured not based on need, some were not used to the optimum, including several pieces valued at RM3.66 million supplied between 2001 and 2006 which have remained idle to this day.
The report says this indicates there was no proper planning by the ministry in the procurement of equipment and the purchase was not based on actual need.
For example, it says, nine types of equipment valued at RM1.42 million supplied between 2001 and 2004 for a metal fabrication course and electrician course were not used until the end of last year because the courses were to be held only early this year.
The report says the unused equipment can become obsolete and the cost of repair and replacement will have to be borne by the ministry as the warranty period has already expired.
“In audit terms, procurement of equipment without planning and not based on actual need leads to wastage of public funds,” it adds.
The report also comments on values of contracts of between 30 to 50 per cent higher than the ceiling price set by the Finance Ministry, and cites the example of the supply of equipment to the Kuala Langat ILP at a cost of RM61.49 million – a value higher by between 36.6 per cent and 53.7 per cent.
It also cites weakness in the procurement of course equipment by the community college under the Ministry of Higher Education. For example, it says, the Kuala Langat Community College was forced to lease equipment for an electrical technology course for classroom assessment at a cost of RM137,473, when such procurement was not provided for when the use of the equipment contributed to 60 per cent of the marks of the course.
The Tawau Community College in Sabah had also taken delivery of 10 pieces of equipment valued at RM494,518 for an automotive diploma course between 2002 and 2004 but have not used the equipment because the courses have yet to be run, it adds. – Bernama
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