Transport Ministry Violated Financial Rules Over Kl Air Traffic Control Centre

The Auditor-General’s Report 2021 said the government bore costs that should have been borne by contractors and consultants.KUALA LUMPUR: The transport ministry’s decision to manage the Kuala Lumpur Air Traffic Control Centre (KLATCC) project’s contract in a hybrid manner does not guarantee that the government’s interests are always protected, and it also violates financial regulations.
According to the Auditor-General’s Report 2021, this caused the government to bear costs that should have been borne by contractors and consultants, while payments were made before the service was provided.
“The report found that the project was not handled efficiently, reflected in the weakness of the EoT (extension of time), maintenance and ICP (industry collaboration programme),” it said.
It said weaknesses were also found in the physical security aspect of the building, as well as systems that could pose a risk of physical and system intrusion if not improved immediately.
To overcome the weaknesses raised and to ensure the mistakes are not repeated in the future, the auditor-general proposed that the transport ministry review all the contract terms to ensure that the interests of the government are protected.
“The transport ministry and the Civil Aviation Authority of Malaysia need to ensure that contractors carry out all the scope of maintenance service perfectly, and impose appropriate penalties/fines,” it said.
It also recommended that the ministry expedite the process of gazetting the new KLATCC as a protected area and protected place so that it is fully protected in line with its vital role in the country’s civil aviation.
In addition, the transport ministry and Technology Depository Agency Bhd, which comes under the finance ministry, must ensure that the ICP’s implementation goes as planned and the objectives are achieved as the government wishes, said the report.
It said the new KLATCC, which commenced operations on Aug 31, 2021, was completed after five-time extensions, involving 898 days or more than two years. - FMT

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