Millions In Maintenance Fees Paid For Two Inactive Police Helicopters Audit Report

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The police had paid millions for the maintenance of two inactive and broken down helicopters, the Auditor-General's report 2019 revealed
The audit report showed that the police had paid RM3.47 million in maintenance for two Ecureuil AS355 F2 helicopters, units 9M-PHA and 9M-PHF, based at the Air Wing Unit in Subang from 2017 to 2019
This was despite the fact that the last maintenance service recorded by both helicopters were from December 2011 (unit 9M-PHF) and August 2014 (unit 9M-PHA)
The audit team, in its visit to the unit in September 2019, also found that six out of 10 of the Ecureuil helicopters remained inactive for over six months
The report stated four of the helicopters were not in service and remained unrepaired due to budget constraints
These helicopters were last maintained from 2011 to June 2019
One helicopter, which was involved in an accident, was in the process of being disposed of
Another inactive helicopter, which was involved in an accident, was last maintained in March 2018
However, the audit found that three of the inactive helicopters were not entitled to a 25 percent reduction of the RM38,500 monthly maintenance fees
The three-year RM17 million maintenance contract was inked in July 2014 and later extended to October 2019
In their response, the police said a 25 percent discount in maintenance fees was only allowed for a maximum 30 percent of the total helicopters or three units
The report highlighted unit 9M-PHJ as an example of the maintenance fee overpayment
"According to the audit's calculation, a total of RM105,875 was overpaid monthly for the past 11 months, from October 2018 to September 2019
"A maintenance service contract is not supposed to restrict the maximum number of the helicopters entitled to a discount at one time as due to being broken down, which is something unforeseen," said the report
In another development, the audit report also found a violation in the Criminal Investigation Department's (CID) RM3 million corrective maintenance contract for the photography equipment
The audit report said the cost for the police to replace their photography equipment shot up 1,187 percent to RM2.7 million as compared to the ceiling price set at RM209,964 in the three-year contract
Under the contract, the police would only allocate RM209,964 for the replacement of new parts while the rest of RM2.79 million would be allocated for corrective maintenances
As a result, the company was awarded a contract extension worth RM1.5 million for 18 months until May 2019
A further probe also found that 467 photography equipment was replaced with new gear. This was a breach to the original contract, which stated the photography equipment should be maintained
Based on the CID's records, the company had claimed the corrective charge and the maintenance charge
The audit report found that personnel with the finance units and the Technical Assistance Division (D6) failed to conduct a thorough inspection before a payment was made
"(This) had resulted in an inappropriate payment," pointed out the audit report
In their reply in June 2020, the police claimed that the replacement of 467 photography equipment had not exceeded the total value of the RM4.5 million contract
Meanwhile, the audit report also questioned the whereabouts of 187 photography equipment, which were sent for maintenance but were nowhere to be found
This included 68 printers, 63 digital cameras, over 50 lenses and five video camcorders
"An early investigation found that these assets were still with the company. However, the company confirmed (the equipment) were not with them," read the audit report
As a result, the audit report said the police would lodge a police report over the missing of these items
The police would set up an internal investigation committee to probe the matter. - Mkini

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