Fines amounting to RM651,650 were not imposed on a contractor which was late in completing the maintenance works of the Air Support Command Headquarters (ASHQ), according to the Auditor-General’s Report 2019.
According to the report, the maintenance works valued at RM6.07 million suffered delays of between 44 to 1,103 days.
The report mentioned that the delays were calculated from the day the work should be completed according to the Repair Order until the date of the Certificate of Completion was issued.
“It also stated that the duration of work was stipulated according to Repair Order issued before the maintenance work was implemented at ASHQ.
“The delay fine is set at one per cent for each service delayed for every month,” said the report.
The audit report said clause 6 and 22 in the contract concerning the delivery of service according to the stipulated periods were clearly stated and a fine would be imposed for violating the duration.
However the audit report stated that the delay fines were not imposed as the job verification officer, providing officer, reviewer and authorising officer at the ASHQ Finance Unit and Procurement Unit did not check carefully the completion period according to contract conditions before payments were made.
Feedback from Royal Malaysian Air Force (RMAF) received on June 19 2020 stated that delay fines would be imposed on the contractor for work finished later that the actual date.
To ensure compliance with contract regulations and enforcement of clauses, the report suggested that the Defence Ministry (Mindef) enforced the delay fine clause on the company for delays in handing over or supply.
Apart from that MINDEF should also ensure the job verification officer, providing officer, reviewer and authorising officer should review carefully according to the contract conditions to avoid undue payments and actions should be taken against the officers for not complying with the orders of the department subject to their finance regulations.
-- BERNAMA
Bernama
Mon Aug 24 2020
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According to the report, the maintenance works valued at RM6.07 million suffered delays of between 44 to 1,103 days - BERNAMApic
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