Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on July 16, 2019

KUALA LUMPUR: A radar facility that only went operational almost three years after its original completion deadline had risked national security.

The project, awarded at an original contract value of RM289.8 million via a direct negotiation, saw four extensions of time totalling 602 days, according to the Auditor-General’s Report 2018.

The project, completed in October 2017, was not operational until January this year, the report said, due to delays in relocating radar equipment to the site.

“Audit visits on July 9, July 30 and Nov 22, 2018 found the radar complex still not operational even though the project was finished on Oct 2, 2017. This is because the radar had not been relocated from the temporary site in Location A to the final site in Location B,” the audit report noted.

“In the audit’s opinion, delays in moving the radar from the temporary site in Location A to Location B could affect the radar detection coverage and posed a risk to the national air defence.”

It added that the delay was because the procurement of cables and radio, separate from the construction works of the facilities, was implemented late.

In a response dated April 2, 2019 to the audit’s findings, the defence ministry said relocating the radio and radar to Location B was fully accomplished on Oct 23, 2018 and Jan 29 this year respectively. “The radar was declared fully operational on Jan 29, 2019 at 3pm,” said the ministry.

As for the financial aspect of the contract, the audit report opined that the financial management was orderly and that the ministry had taken steps to find the best price available.

The actual locations involved are withheld in the report for security reasons. The delayed project is at Location B of the Sector Operational Centre (SOC) Infrastructure Development Project under the 9th Malaysia Plan.

Apart from the Location B project, the SOC development also involved two other contracts — for phases one and two of the SOC complex respectively — at Location A.

The first Location A contract worth RM88.85 million was concluded on Aug 8, 2012, two years after it was awarded in August 2010. The second Location A contract worth RM159.5 million, awarded in February 2012, was completed on Jan 14, 2016. The three SOC contracts totalled RM538.15 million.

The Location B project, awarded via a direct negotiation, was officially inked in August 2012, with its completion slated for 48 months later, meaning it was supposed to be completed in February 2016.

The delay in completing the construction to October 2017 was due to, among others, land boundary issues, road blockades and land claims from local residents.

The contractor for the Location B contract has the company number 227571-V. A search by theedgemarkets.com found it belongs to Sarawakian company Wekajaya Sdn Bhd.

Apart from the delays in relocating the radar to Location B, the audit report also flagged weaknesses in the site handover from the contractor to the end user, as well as low work quality not conforming to specifications.

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