Tuesday October 25, 2011
From: http://thestar.com.my/news/story.asp?file=/2011/10/25/nation/9766843&sec=nation (accessed 25 October, 2011)
PETALING JAYA: The Marine Parks Department (JTLM) overpaid between 177% and 2,805% for equipment on a new boat and was not even supplied some items, the Auditor-General’s Report stated.
It said JTLM did not conduct market research when it agreed to the price listed in the contract for these items, resulting in an additional cost of RM172,501.
The glaring differences included paying 2,805% more or RM56,350 for a night vision marine binoculars although the estimated market rate for the item was RM1,940.
However, what was supplied was not the RM56,350 binoculars but a non-night vision marine binoculars worth RM1,069.
Other price differences of equipment included a night vision Bushnell binoculars for RM56,350 which was a 1,893% increase from the market price of RM2,827; RM16,100 for a LCD television and DVD player which was 638% more than the market rate of RM2,182; and RM11,845 or 246% more for a laptop and a colour printer although their market price was RM3,428.
However, the audit found that the DVD player that was supplied was only worth RM195 and the laptop and colour printer that were supplied was only worth RM2,137.
Other items that were quoted beyond the estimated market price was for a colour marine radar for RM47,725 or 478% more compared to RM8,255 and a hand-held portable VHF transceiver for RM4,324 or 177% more compared to RM1,561.
JTLM had signed a RM7.51mil 12-month contract with a company to design, build, install, test and deliver an all-weather aluminium enforcement boat by July last year.
“There was no evidence that JTLM had conducted the necessary market research.
“The procurement management needs to be handled in a more organised manner by officers who have the expertise and experience in handling Government procurement.
“Contract terms on the design and quality testing were not followed and the equipment was not supplied according to specification.
“Yet payment was fully made without any price adjustments,” the report said.
The Treasury replied that the estimates for the contract were based on a verbal market research with experts from the Fisheries and Marine Department as well as reference to previous tenders from the Marine Department.
It added that there was a one-year gap between the tender offer date and the supply of items resulting in some items being supplied that were not according to specifications.
However, JTLM said the change in brands did not affect the quality, function and specification of the items. (emphasis added)