ePerolehan development not efficient: A-G’s 2019 report



THE development of the Ministry of Finance’s (MoF) new ePerolehan system was not done efficiently as the completion was delayed for three years from the initial date. 

In the Auditor-General’s Report (LKAN) 2019 Series 1, it said that the additional cost amounted to RM28.27 million has been paid to the contractor by the government. 

“The development of the new ePerolehan system was not completed within the stipulated period due to the delay of its go-live by three years from the initial date. 

“As a result, additional cost totaling to RM28.27 million was paid to the contractor on Sep 14, 2018 based on the approval from the procurement committee although a clause on the additional cost was not stated in the contract,” it said. 

The go-live date for the new system was delayed to Jan 1, 2018 from Jan 1, 2015. 

There was a delay in charging the contractors for Liquidated and Ascertained Damages (LAD) amounting to RM16.3 million for the development of a system that was overdue. 

The report revealed that the contractor was also late in taking action towards the complaint based on Service Level Agreement (SLA).

“A penalty of RM34,870 due to non-compliance with the SLA has not been imposed on the contractor.” 

It however noted that the system has benefited the public service during the Movement COntrol Order period which began on March 18 as the procurement process was not affected. 

MoF had developed an ePerolehan system in 2000, which  is an electronic procurement system that enables suppliers to offer products and services to the government through the internet. 

The system was replaced by NextGen Electronic Procurement Services or the new ePerolehan system in 2018 which cost RM1.83 billion. 

To overcome the flaws raised in the new system, the report provided some recommendations that can be applied to avoid recurring problems in the future. 

Among the recommendations proposed is by adding restrictive functions towards procurement that does not adhere to financial procedure. 

It added the stipulated clause regarding LAD and SLA has to be enforced on the contractor to avoid delays in imposed charges.