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Laporan Liputan Media Berkaitan LKAN 200819 October 2009 (Monday)Projek Landasan Berkembar Elektrik Antara Rawang Dan Ipoh - Kementerian PengangkutanAuditor General Wants DRB-Hicom Fined RM80.88mKUALA LUMPUR (Oct 19, 2009) : Auditor General Tan Sri Ambrin Buang wantsthe Transport Ministry to fine DRB-Hicom Bhd RM80.88 million (RM164,727 aday) for its failure to complete the Rawang-Ipoh electrified double trackingproject on time. He said in his 2008 A-G’s Report the cost of the project escaledby RM1.43 billion from its original cost of RM5.77 billion due to weaknesses likelate completion, equipment bought more than what was needed and purchase oftrains not coordinated with infrastructure development.Ambrin said the project was implemented through two packages, namelyAmbrin Buang infrastructure package with DRB-Hicom as the main contractor and systempackage with Mitsui-MTS Konsortium as the lead contractor. He said theweaknesses in the project resulted in the project objectives not fully met and the government alsomost likely to bear part of the losses estimated at RM1.14 billion.“This is because, according to the agreement between DRB-Hicom and the government, the maximumliability which could be claimed from the contractor is only at RM257.99 million.” He added that theministry or Keretapi Tanah Melayu Bhd must ensure that all damages were repaired by the contractorwithin the defect liability period to avoid the government from having to bear the repair costs.Monday October 19, 2009Projek Landasan Berkembar Elektrik Antara Rawang Dan Ipoh - Kementerian PengangkutanGovt May Have To Bear Part Of RM1.14bil Rail Double-TrackingLossKUALA LUMPUR: The government may have to bear part of the RM1.14bil loss in the 179km raildouble-tracking contract between Rawang and Ipoh as the project was poorly managed. An auditof the project carried out from August 2008 to January 2009 identified several weaknesses in itsimplementation such as the delay, and the procurement of extra equipment and coaches not keepingin with the specifications causing the infrastructure to be not fully optimised. “As the project wasnot properly managed, it did not meet the objective of its implementation,” according to the AuditorGeneral’s Report 2008. The report feels that the Transport Ministry should have taken firm actionagainst the project manager, Syarikat Kinta SamuderaOpus Consortium (KSOpus) for not allegedlynot reporting its dismal performance to the Finance Ministry so that its services could be terminated.“Based on the feedback by the Transport Ministry, KSOpus work performance was not satisfactory.The company had failed to shoulder the responsibility as specified in the contract,” it said. Therewas no proof that that the Transport Ministry had reprimanded the project manager and informed theFinance Ministry nor proof that it had provided quarterly reports on the project manager’s performanceas required by the Treasury Circular No. 8 year 2006. The report said that the full amount of the lossescould not be claimed from the original contractor, DRBHicom Berhad as its maximum liability wasonly 10 per cent of the contract or RM257.99mil. DRBHicom could not complete the infrastructuralpackage by Dec 10, 2003 as it merely completed 76.8 percent of the project before its contract wasterminated on Aug 5, 2005. “The ministry should have slapped the Liquidated Ascertained Damages(LAD) amounting to RM80.88 mil (RM164,727 per day) on DRBHicom for its failure to complete theproject as scheduled,” it added.14Jabatan Audit Negara