by ASILA JALIL / pic by TMR FILE
THE development of the Finance Ministry’s (MoF) new ePerolehan system was not efficiently executed as its completion was delayed for three years from the initial date, according to the Auditor-General Report 2019 Series 1.
The report revealed that the delay caused the government to pay an additional cost of RM28.27 million to the contractors. The go-live date for the new system was delayed from Jan 1, 2015, to Jan 1, 2018.
A-G Datuk Nik Azman Nik Abdul Majid added that there was a delay in charging the contractors for liquidated and ascertained damages amounting to RM16.3 million for the development of the overdue system.
The audit also found that the contractor was also late in taking action towards a complaint based on the service level agreement (SLA).
“As a result, a penalty of RM34,870 due to non-compliance with the SLA has not been imposed on the contractor,” he stated in the report tabled in Parliament yesterday.
MoF 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 in 2018, which is also known as the new ePerolehan system. The development of the new system cost RM1.83 billion.
Separately, the report also noted that the licensing and enforcement activities for petty traders by the Kuala Lumpur City Hall (DBKL) was not effectively managed as the waiting period for licence approval reached 515 days.
The audit revealed that as of June 30, 2020, 392 applications or 11.4% of the new hawker licences for 2019 are still being processed and have exceeded the approved period for new licence applications.
The report said DBKL’s management was also inefficient as flaws were found in the licence application process, such as in identifying the validity of documents for identification purposes, and irregular maintenance of enforcement reports.
“Inefficient rental collection contributes to high rental arrears and has the potential to be disposed of, which could affect DBKL’s revenue,” it said.
Arrears from the rental of plots as of Dec 31, 2019, amounted to RM21.11 million, involving 12,534 traders. A total of 776 (13.1%) trader plots had rental agreements, while 5,143 (86.9%) did not have rental agreements and were only based on offer letters.