KUALA TERENGGANU – The Auditor General’s Report took to task the Terengganu Sports Council for not following proper procedures in its purchases and claims.
The report, released in Parliament in Kuala Lumpur earlier today, said the council did not call for open tenders involving 145 purchases of equipment and accessories worth RM5.68 million between 2014 and last year.
Instead, the council made direct negotiations and acquisitions from quotations.
The report also discovered that the council made the purchases via the various sports associations, and sought claims for coaches, team managers or sports managers.
It also found that sports associations had made 59 purchases worth RM1.70 million and 25 claims worth RM258,894, during the period.
“These did not comply with the procedures laid out for purchases and claims, which had improper records and supporting documents. Some of the equipment and accessories were also delivered late by the suppliers,” it stated.
The report recommended that future purchases follow acquisition procedures, that the equipment and tools are delivered on time, and used accordingly.
There should also be transparency in the purchases made with proper records kept, as per the integrity pact.
The report said the handling of the procurements was not satisfactory as a price negotiation committee was not established to enable proper negotiation with the suppliers for reasonable and optimal pricing of equipment and tools.
On the performance by state-owned Syarikat Air Terengganu Sdn Bhd, the report found that the company made profits before tax of RM7.32 million and RM13.58 million in 2015 and last year, respectively.
This accounted for a reduced loss from RM61.70 million in 2014 to RM42.01 million for last year.
“However, there were several incompetent management and administration practices. This led to three out of the 12 treatment plants not conforming to approved designs; management of non-revenue water did not meet its target; water revenue arrears increased from RM19.57 million in 2014 to RM20.24 million for last year; and the composition of the board of directors were improper.” – NST
