Audit report: RM142.75 mil for Skypark double-track still not spent

KUALA LUMPUR: The National Audit Department has found that RM142.75 million channelled to the Railway Assets Corporation (PAK) for the Subang-Skypark Subang Terminal Extension Project in January 2012 is still not spent.

According to the Auditor-General’s Report 2016 Series 2 issued today, it was also found that the allocation had not been returned to the transport ministry (MOT), resulting in the project still not implemented as planned.

In addition, the value management conducted did not achieve the full objective when cable shifting work and the cost of appointing an independent checking consultant (ICC) was not refined which eventually led to an increase in costs by RM21.07 million.

The audit found no feasibility study was done when the proposed project was approved in September 2011 and the objective of constructing a cargo train short-cut track hard to achieve.

The audit also found several aspects of construction work to be dissatisfactory including broken pieces of mosaic, roof and walls, designs that were not user-friendly, work not meeting specifications, electrical work not complying with regulations, and low monitoring.

To ensure the project is efficiently managed, the audit recommended that MOT fully recover the RM142.75 million which was transferred to PAK, including benefits, and conduct an investigation on the negligence during the claim process by ICC.

In addition, the audit also suggested that stern action be taken against the contractor on the management of issues at the site which was dissatisfactory, including failure to complete the project on schedule and improper construction work which did not comply with standards.

The audit also recommended that MOT raise the level of close monitoring on the quality of work of the contractor who often had to demolish completed works and redo them due to mistakes.

The Subang-Skypark Subang Terminal Extension Project begins from Km17.37 at the Subang Jaya Section-Batu Tiga and ends at the Skypark Terminal, a distance of 8.157km involving an overall cost of RM521.06 million encompassing works to construct the station, tracks and system.

The project, which commenced on Feb 21, 2013, should rightly have been completed on Feb 20, 2016 but three time extensions (EOT) were approved with the last ending on June 14, 2017.