The implementation of the Service Technical Centre (STC) project worth RM73 million for maintenance of Malaysian Su-30MKM jets is deemed ‘less than satisfactory’, according to the latest findings in the Auditor General's Report.
The federal audit report released today criticises the Malaysian Defense Ministry for appointing an unqualified and financially unsound contractor that resulted in the biggest setback to the project.
“During the first 10 months, a sluggish construction progress had resulted in the takeover by a nominated sub-contractor on 15th January 2015,” the report said, without naming the replacement.
The contractor, Syarikat Pembenaan Setia Jaya Sdn Bhd, was appointed in March 10, 2014 for the Defence Ministry project. It was to be completed by September 20, 2015.
The federal audit conducted between April and June this year also found that a second time extension for the project was not approved, despite the issuance of a Certificate of Non-Compliance.
The A-G recommended the Defence Ministry ensure that future contractors appointed to be experienced, qualified and capable of executing the project for which they are contracted to build. Adding that continuous monitoring was required to ensure such construction projects meet the stipulated specifications and guidelines.