PETALING JAYA: The Auditor-General’s (A-G) Report shows a public university’s board of directors did not approve a payment of RM14.85 million for projects involving the university’s maintenance.
The report said Universiti Teknikal Malaysia Melaka’s (UTeM) vice-chancellor and treasurer have signed 19 work contracts without authorisation from the university’s directors.
“The audit conducted between June until August last year summarises the UTeM’s revenue management has not achieved optimum efficiency because there is deviation in financial regulation,” the report said, adding the university can still improve on its financial management.
The A-G’s Report also showed that UTeM paid a sum of RM82,348 for two projects that were not done or partially completed.
“We suggest that the university’s officers from the finance and purchasing departments conduct thorough checks on the works based on the contracts’ terms.
“The legal department should also be strengthened in providing advice on managing and administrating the contracts,” the report said.
The A-G’s Report also showed that two projects under the defence ministry and the Public Works Department worth RM145.18 million, which comprised the building of garages to keep military vehicles, failed to be completed in time.
The two garages were situated in Kuantan and Port Dickson camps.
“Two companies who obtained the contracts were supposed to finish the construction within a one-year deadline.
“Although an extension was granted to the companies, they did not finish what they were supposed to do in time,” the report said.
The government issued two certificates of non-completion notices to the companies and fined them for RM17,000 in total.
“Up to December 2017, the fine imposed against them amounted to RM4.15 million,” the report said, adding that the ministry should ensure the clauses under the contracts allowed them to claim the cost and losses due to late completion.