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MORE SHOCKING REVELATIONS!
Of cheating, there seems no end…
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Private Security for Schools: PAC will question Education Minister
How much were the K-POP CONCERT 2012 Hari Belia celebrations?
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Malaysian Insider
MACC has opened 15 investigation papers over AG report
BY MOHD FARHAN DARWIS
October 06, 2013
The Malaysian Anti-Corruption Commission (MACC) has opened 15 investigation papers into various discrepancies revealed in the 2012 Auditor-General Report, its investigation director Mustafar Ali has said.
Mustafar said investigations were being carried out under the MACC Act 2009 and they have held discussions with the National Audit Department to obtain further information which could help shed light on the discrepancies.
“The MACC has set up a special task force together with the National Audit Department to investigate the discrepancies which were highlighted in the report. The team will probe parties who are believed to be involved in corruption, embezzlement, abuse of power and forgery,” he said in the statement today.
Mustafar said the MACC viewed the discrepancies highlighted in the audit report and it would recommend that the relevant departments or agencies initiate disciplinary measures against those who have been negligent or careless in their line of work.
MACC has opened 15 investigation papers over AG report
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THE K-POP NATIONAL YOUTH DAY EVENT
*ARE WE GETTING THE RIGHT SUMS?
Malaysiakini
K-Pop event now RM67mil: What else is gov’t hiding?’
The total bill for the Youth and Sports Ministry’s 2012 Youth Day event appears to be endlessly ballooning, from RM55 million in June to RM67.61 million now.
Bukit Mertajam MP Steven Sim said this based on the latest Auditor General’s Report revelation of yet another RM12.61 million that had been spent on an “assistance programme”.
Sim in June called on Sports Minister Khairy Jamaluddin to explain how the original bill of RM15.2 million for the event, which featured the notorious K-Pop concert, ended up ringing up RM55 million.
“It seems that wasn’t the whole story. According to the Auditor General’s Report, the ministry spent RM12.61 million on an assistance programme.
“The funds were channelled to the organiser of the 2012 Youth Day through sports bodies such as the Malaysian Youth Council (Feedback report on key issues, para 16.5.2.5.f on page 183),” said Sim.
He pointed out that report also noted that because of this act “the total actual expenditure of the 2012 Youth Day as reported by the Ministry was under reported”.
‘K-Pop event now RM67mil: What else is gov’t hiding?’
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*WHO IS TELLING THE TRUTH? Is it the former Minister, Ahmad Shabery Cheek, or the current Minister, Khairy Jamaluddin?
LYING THROUGH HIS TEETH!
The Youth and Sports Ministry spent RM1.6 million to bring in three South Korean pop groups for the National Youth Day celebrations last year, in contrast to the claim that the cost was sponsored.
Ahmad Shabery Cheek, who is now communication and multimedia minister, described the department as being “culas” (not diligent) in checking the facts.
In a Facebook posting, he conceded that the Youth and Sports Ministry had paid RM1.6 million for a K-Pop concert in conjunction with the National Youth Day 2012 celebration.
However, Shabery said the money came from sponsors.
Taking the Audit Department to task, the minister noted that it did not include the money from sponsors which was banked into the National Sports Council’s account.
“The auditors only looked at the amount that came out of the ministry’s account,” he added.
Shabery said the ministry received RM20 million from domestic and foreign corporate sponsors for the celebration.
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Contrary to Shabery’s claim, his successor Khairy Jamaluddin yesterday said the Youth and Sports Ministry was forced to pick up the tab because the sponsors withdrew.
Minister claims Audit Dept’s K-Pop report out of tune
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For Kelantan, all that glitters is NOT gold!
Malaysiakini
AUDIT REPORT Kelantan’s foray into gold mining turned out to be a million ringgit stab in the dark that has not paid off, says the Auditor-General’s Report 2012.
The report notes that state mining company Kelstone Sdn Bhd (KSB) accumulated huge losses, even as the amount reportedly shrunk from RM2.7 million to RM1.54 million between 2009 and 2011.
“Most of its annual income is derived from ‘tribute’ payments from contract mining companies looking for gold alluvial and feldspar,” the report says.
Since 2005, KSB has been handed state concessions to mine for gold in about a dozen spots in Tanah Merah and Gua Musang. The company only started mining at two to three spots in 2011-12, but did not find any substantial amount of gold.
Kelantan gambled millions away on gold mines
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NO, OUR CHILDREN AND GRAND CHILDREN ARE NOT SAFE IN SCHOOL! While certain people are pocketing money, we get old or, in some cases, non-existent security guards.
Star
Good money
Bad guards
The spotlight is now on the Education Ministry’s weak tender system following the revelation by the Auditor-General that it wasted RM2.052bil on sub-standard security services from 2010 to 2012, with some contractors saying the weaknesses had given rise to allegations of kickbacks.
The issues included KualaLumpur based security firms being given contracts in states where they did not even have branches or state representatives to ensure these hired guards were actually carrying out their duties.
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The security contractor claimed that each contract for one zone would be worth between RM90,000 and RM130,000 per month, depending on location and the salary paid to the guards. Each contract is effective for a three-year period.
“The MOE can be the biggest cash cow for those interested in making money because they have assets everywhere,” he said, adding that the contractors needed inside connections to get the jobs.
Kickbacks would have to be given to those giving out the contracts and the agent, said the contractor. Each would receive 2.5% of kickbacks from the total worth of the contract.
“If you get a contract worth RM100,000 in one zone you will have to give RM5,000 in kickbacks or commissions every month. There is no way you can get a contract otherwise,” he claimed.
There are 10,094 schools nationwide.
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Malaysiakini
AUDIT REPORT Certain individuals in the government’s financial arm, Khazanah Nasional Bhd, are still allowed to use its corporate charge card despite Khazanah failing to declare its expenses from the earlier months.
As a result, unrecognised expenses on charge cards issued to Khazanah Nasional accumulated to RM1.26 million last year alone, the highest amount in four years.
This comprises unpaid balance in excess of one month at RM487,317; a sum of RM291,400 for two months and RM485,187 over a period of two to six months.
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The audit report states that based on a financial communication note dated June 1, 2006, American Express charge cards were issued to directors and the chief executive of Khazanah Nasional. As of Dec 4, 2012, there were 106 such charge cards issued by Khazanah, with no limit on the usage.
RM1.26mil in charge card use by Khazanah staff
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Malaysian Insider
The Auditor-General’s report, a tale of greed from top to bottom
NEWS ANALYSIS BY THE MALAYSIAN INSIDER
October 02, 2013
One really troubling fact about the 2012 Auditor-General Report released yesterday is that the poison of corruption, wastage and negligence has seeped right down to the lowest levels of government.
Not only have Malaysians got to be worried about corrupt politicians but also civil servants from the top to the bottom. How else do you explain nearly RM200 million being spent on incinerators without the know-how to operate the technology or RM3,000 on wall clocks or custom-made shoes left to rot because they did not meet the specifications?
Money is being spent and wasted like water. And the disease has infected every ministry, government-linked company and institution across the nation. Perhaps it was inevitable given that civil servants have witnessed politicians milking the system for decades and getting away with it.
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The question to ask is simple. Are there any honest people left in the government or civil service that will do anything about the Auditor-General’s Report? – October 2, 2013.
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Malaysian Insider
I pay dead people – welfare aid to ghosts in three states
BY EILEEN NG
October 02, 2013
Dead people were receiving welfare aid in Sabah, Kelantan and Negeri Sembilan. This is yet another finding in the 2012 Auditor-General’s Report, which highlighted spectacular failures by government departments when it was submitted to Parliament yesterday.
I pay dead people – welfare aid to ghosts in three states
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Malaysiakini
AUDIT REPORT Prices of goods may differ from one place to another, but when it comes to a DVR16 close circuit television system (CCTV), the Auditor-General’s 2012 Report finds the price difference between two places too big to swallow.
According to the report, a unit of the DVR 16 CCTV purchased by the Gerik Community College in Perak cost more than eight times what its counterpart paid for in Masjid Tanah, Malacca.
One unit in Gerik cost RM85,500 the one in Masjid Tanah cost RM10,249.
Despite initiating an investigation into the matter, the Higher Education Ministry (now merged into the Education Ministry) justified the discrepancy by saying the CCTVs were bought separately.
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The CCTVs were installed as part of a bigger project to upgrade 15 community colleges throughout Malaysia, costing a total of RM50.17 million.
Perak college pays record price for CCTV
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LYING THROUGH HIS TEETH!
The Youth and Sports Ministry spent RM1.6 million to bring in three South Korean pop groups for the National Youth Day celebrations last year, in contrast to the claim that the cost was sponsored.
Malaysiakini
AUDIT REPORT Contrary to a denial it issued last year, the Youth and Sports Ministry did pay for a K-Pop show held last year.
It had stumped up RM1.6 million to bring in three groups for the National Youth Day celebrations, according to the Auditor-General’s Report 2012.
The ministry was reprimanded for ‘excessive’ and ‘imprudent’ spending amounting to RM3 million on this and eight other programmes to mark the same occasion.
Three K-pop groups – U-Kiss, Teen-Top dan Dal*shabet – were brought in by Stadium First Sdn Bhd for the show
The ministry’s secretary-general Mohid Mohamed reportedly told Bernama last year that the cost of bringing in the performers was borne through sponsorship.
A total of RM1.11 million was spent on promotion and publicity for the event, which the auditor-general describes as being too high.
Busted! Gov’t paid RM1.6mil for K-Pop show
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Malaysian Insider
AG’s report reveals ministry official claimed RM300,000 for trip worth under RM50,000
BY TRINNA LEONG
October 01, 2013
The Auditor-General questioned a RM303,813 travel claim by a Communications and Culture Ministry senior officer for a four-day study trip to Geneva, Switzerland, which the auditors felt was worth only RM50,000.
The 2012 Auditor-General Report revealed that even if the officer took a return first-class flight, stayed in the best hotels, wined and dined in fancy restaurants and was given allowances to shop for winter clothing, the final tab would have cost no more than RM50,000.
The claim was made by the officer as part of the ministry’s Malaysian Emergency Response Services (MERS) 999 project. MERS 999 is a government initiative to have only one emergency number, sub-contracted out by the ministry to Telekom Malaysia (TM).
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The auditor-general noted that TM was overpaid by RM27.59 million for the MERS 999 project. The report showed that the government-linked telecommunications firm hired local and foreign consultants for RM9.97 million. It was RM1.92 million more than what the experts were supposed to receive.
AG’s report reveals ministry official claimed RM300,000 for trip worth under RM50,000
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WE HAVE HEARD MANY STORIES OF CHEAP THINGS BOUGHT AT HIGH PRICES, AND EVEN OF NON-EXISTENT THINGS PAID FOR.
THE LATEST AUDITOR-GENERAL’S REPORT CONFIRMS AGAIN THE WASTE AND ABUSE OF TAX-PAYERS’ MONEY BY THE GOVERNMENT AND ITS VARIOUS DEPARTMENTS AND AGENCIES.
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NOW YOU KNOW WHICH GLC TO WORK FOR!
1 Syarikat Prasarana Negara
2 MIMOS
3 Amanah Raya
4 Jambatan Kedua
5 Indah Water Konsortium (IWK)
6 Cyberview
7 KTM (paid the least)
In response to the AG Report, the treasury said these GLCs were not set up for the sake of making huge profits but to fulfill its social responsibility and nation-building objectives.
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Malaysian Insider
Bonus for losses, the GLC way for rewarding employees
October 01, 2013
Seven government-linked companies (GLCs) rewarded its employees with fat bonuses despite recording a combined loss of close to RM2 billion in 2011.
The Auditor-General Report today stated that Syarikat Prasarana Negara, an infrastructure company which had the highest recorded deficit of RM763 million among the group, gave its employees between one-and-a-half and two months bonus each.
The report also found that MIMOS, the country’s research centre, was the most generous of the group, by giving out between two and three months bonus to its employees, despite making a RM4.6 million loss in 2011.
Meanwhile, employees of KTM received the least..
The other companies which lavished its employees with bonuses despite making losses were Amanah Raya, Jambatan Kedua, Indah Water Konsortium (IWK) and Cyberview.
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Imagine paying RM3,810 for a ‘branded’ wall clock!
Malaysian Insider
Clocks, scanners and “miscellaneous items” cost RTM RM9m, up to 7,200 times over budget
BY EILEEN NG
October 01, 2013
The Broadcasting Department blew its budget spending RM120,210 on clocks and scanners alone, thus overpaying for these items by thousands of times beyond its actual cost.
Despite budgeting RM100 per unit for a clock and RM200 per unit for an A4-sized document scanner, the Auditor-General found that the Broadcasting Department spent RM3,810 per unit for “branded” wall clocks and RM14,670 per unit for the scanners.
In the 2012 AG Report, it found the department bought 20 branded wall clocks and three scanners for national broadcaster RTM’s offices in three states.
The department paid RM76,200 for the clocks, which was 3,810% above its estimated budget, and RM44,010 for the scanners, which was 7,235 times more than its initial budget.
The department also bought five scanners for A3 sized documents at an inflated price of RM20,630 each, 103,150% more than its estimated budget of RM1,000 each.
Clocks, scanners and “miscellaneous items” cost RTM RM9m, up to 7,200 times over budget
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Star
Tuesday October 1, 2013 MYT 7:18:50 PM
A-G Report: Malaysian Youth Council paid for same jobs multiple times
The Auditor-General’s Department found that the Malaysian Youth Council (MBM) made multiple payments for the same job more than once.
In its 2012 report, it found that the MBM made between two and three payments for the same job on six different occasions, and labelled these “improper payments”.
The payments varied between RM26,500 and RM41,000, totaling RM430,000.
In response, the Youth and Sports Department said it sent a letter to MBM to get back the RM220,900 excess payments paid to M&S Event & Resources (RM186,300) and Khaliff Enterprise (RM34,600).
A-G Report: Malaysian Youth Council paid for same jobs multiple times
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Malaysiakini
AUDIT REPORT Between June 2008 and December 2010, the Malaysian police purchased five Beechcraft King Air 350 aircraft for a whopping US$58.25 million (RM175.24 million) for their Air Wing.
The planes were supposed to facilitate the upgrading of the nation’s air security.
However, within less than five years of usage, one of the planes had to be grounded for eight months, between September 2011 and April 2012, while another could not be used between June and November 2012.
Furthermore, out of the five, only three aircraft have been delivered so far.
The project was awarded after direct negotiations with Hawker Pacific Airservices Ltd, through its agent EZ Aviation Sdn Bhd.
Cops’ costly planes lack funds for take off
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Malaysiakini
AUDIT REPORT The National Solid Wastes Management Department (JPSPN) spent RM199 million on incinerators over the last four years, and then found there was no expertise to operate such machines in Malaysia.
All four incinerators at tourist spots in the islands of Langkawi, Pangkor and Tioman and in Cameron Highlands saw construction delays of two to three times their original schedules.
And even after completion, the Auditor-General’s 2012 Report says, three of the incinerators were not operated for 223 to 642 days, all because of the lack of expertise.
A fifth incinerator planned for Labuan was scrapped
Incinerator projects cause millions to go up in smoke
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Malaysiakini
AUDIT REPORT The RM73 million Malacca Customs and Immigration Quarantine Complex (CIQ) was illegally built on private land which eventually cost the Malacca state government RM10.8 million, according to the Auditor-General’s Report 2012.
The report pointed out that the federal project which included a jetty, was to be built by Pesona Metro Sdn Bhd at the mouth of the Malacca River on a plot of 1.78 acres.
However the building had required four acres of land. So with the help of state authorities, the state government approved an additional 2.22 acres of adjacent land to make up the difference in Oct 2010.
The said land was in fact owned by Pembinaan Kota Laksamana (Melaka) Sdn Bhd which then issued a trespassing notice against the project contractor.
Despite the legal warning, the federal government instructed the contractor to continue its works, resulting in the land owner filing a lawsuit against the contractor.
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The tussle finally ended when the Malacca state government agreed to compensate RM10.8 million to the land owner.
RM73mil CIQ complex illegally built on private land
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Malaysian Insider
Dubious claims, fake receipts uncovered in uniform and shoes purchase at Health Ministry
BY EILEEN NG
October 01, 2013
Health Ministry staff filed dubious claims totalling more than double the market price for the tailoring of long sleeve tops and pants, backed by receipts from outlets that did not exist, the Attorney-General (AG) report revealed.
They also submitted claims in excess of RM200,000 for shoes, RM8,000 to RM9,000 for overcoats and up to RM2,800 for baju kurung.
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The report noted that 1,014 Health ministry staff were found to have submitted fake receipts to claim for tailoring and the purchase of shoes.
Many of the premises stated on the receipts were either non-existent or without complete addresses and with inaccurate telephone numbers.
The report noted that 922 staff from 10 hospitals, health departments and other health ministry divisions submitted fictitious claims totalling RM545,105 for the tailoring of long sleeve tops and long pants, when the market price is between RM146,340 and RM200,780.
Dubious claims, fake receipts uncovered in uniform and shoes purchase at Health Ministry
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Malaysiakini
The Health Ministry’s decision to brand smokers as ‘stupid’ in promotional literature cost it RM38,750 after the material was deemed unsuitable for distribution.
The Auditor-General’s Report 2012 states that the ministry had ordered 300 backpacks costing RM19,500 and 3,500 notepads at RM19,250 with the slogan ‘Smoking, a stupid habit for stupid people’.
But the items never made it into the hands of the citizens as the language was later deemed inappropriate.
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The report also notes that 63,000 of the ministry’s campaign posters worth more than RM31,200 had spelling mistakes.
RM38,000 lost in Health Ministry’s ‘stupid’ campaign
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Malaysiakini
The 2012 Auditor-General’s Report has revealed severe mishandling of RM2.051 billion with regard to hiring security contractors for schools between 2010 and 2012.
From poorly prepared contracts to hiring of septuagenarians as security guards, the auditor-general said the management of security services in 35 schools and hostels surveyed was generally unsatisfactory.
The audit, which involved schools in Selangor, Perlis and Sabah, found that the contracts were not uniform and did not state specific requirements set by the Education Ministry.
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In some schools, the audit found that contractors had breached the terms of their contracts by hiring security guards who are too old, unfit, dressed inappropriately, ill-equipped and had not been subjected to background checks.
Nineteen of the 35 facilities visited by the audit team did not have anyone guarding the entrances and people were seen entering and exiting freely.
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The audit team found that the Education Ministry was not keeping proper tabs on the implementation of the security project and failed to penalise errant contractors.
Security in schools sees RM2bil go down the tube
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Star
Tuesday October 1, 2013 MYT 2:03:16 PM
AG report: ROS wasted RM121,000 on online system
KUALA LUMPUR: Based on the Auditor General’s Report 2012, the Registrar of Societies (ROS) eRoses system was a waste as the system was not yet up and running despite the ROS having paid RM121,090 for it.
The report also said that the contractor, Scot Technology (M) Sdn Bhd, had only completed the system’s design.
The system was developed in 2008 to allow the public to apply for registering societies and search for information on societies online.
A contract worth RM850,000 had been inked between RoS and Scot Technology, valid from July 1, 2008 to June 30, 2009.
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“The ministry terminated the contract on Oct 29, 2009 as the contractor could only finish 30% of the project,” the report stated Tuesday.
AG report: ROS wasted RM121,000 on online system
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Malaysian Insider
Customs shoes were not, um, custom-made, so that’s RM600,000 down the drain
The latest Auditor-General’s report has given a kick in the shins to the Customs Department for destroying 7,659 pairs of new footwear – because the shoes did not fit.
“The sizes… do not fulfil the needs of the officers and sample tests conducted by the Science Technology Research Institute of Defence found that the soles of the shoes have turned brittle and split,” it said in the report released in Parliament today.
So that was RM602,089 down the drain, or about RM80 a pair. The shoes were ordered four years ago and the quality of the shoes and boots degraded after being kept in the Customs store for three years.
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Malaysiakini
The Auditor-General’s 2012 report reveals that the Royal Malaysian Police Force recorded a total of 309 missing items in the form of weapons, handcuffs and cars.
It also reported that the Royal Customs Department wasted a whopping RM600,000 on 7,659 pairs of shoes that were not according to specification and were then badly damaged during prolonged storage.
The items missing from the police force were recorded between 2010 and 2012, resulting in losses amounting to RM1.33 million.
The auditor-general reports that handcuffs topped the list of missing items at 156, followed by 44 weapons and 29 police vehicles.
For more Police lose weapons, Customs men lose shoes
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Malaysia Insider
Auditor-General ticks off taxman over wasteful spending
BY LEE SHI-IAN
October 01, 2013
The Inland Revenue Board (IRB) wasted more than RM9 million in various costs during the relocation of its processing centre from Pandan Indah to Bangi, revealed the 2012 Auditor-General Report.
Besides spending RM4.7 million in rental costs, the IRB spent an additional RM505,600 from October 2011 to February 2013 on utility bills and for hiring security firms.
The report found that the IRB paid RM529,733 in consultancy fees to four firms, and described the payments as wasteful because the reports issued by these firms could not be used.
For more
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The 2012 Audit Report comments that the scope of the two jobs were almost identical and questioned why Astonish View was given RM120,500 to develop Facebook and Twitter, while Eficaz Media was allocated a higher sum to develop one Facebook page.
Malaysiakini
AUDIT REPORT The auditor-general has questioned the Health Ministry’s payment of RM320,000 to two companies to enhance its social media presence by developing two Facebook and Twitter accounts.
The expenditure, during Liow Tiong Lai’s tenure as minister, comprise payment of RM199,068 to Eficaz Media Sdn to develop the first Facebook page for the anti-smoking ‘Tak Nak merokok’ campaign.
The second Facebook page and the Twitter account were developed by Astonish View Sdn Bhd for the ‘Kempen intervensi penyakit tidak berjangkit’ (intervention campaign for non-contagious diseases), costing RM120,500.
Health Ministry spends RM320k on FB, Twitter
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