File photo of Bintulu Port for illustration purposes.
KUCHING: The Bintulu Port Authority did not obtain approval the Ministry of Finance (MOF) for projects amounting to RM1.4 billion that were directly negotiated.
According to the Auditor-General’s Report 2016 Series 2 issued yesterday, there were also no detailed plans before the contracts were issued to Muhibbah Viccana Joint Venture (MVJV) on December 16 last year.
“The auditors did not find evidence that Bintulu Port Authority requested permission from the Finance Ministry to conduct the procurement exercise through direct negotiation,” it reported.
To note, Bintulu Port Authority is a Federal Statutory Body under the Ministry of Transport Malaysia.
Inaugurated on August 15, 1981 under the Bintulu Port Authority Act 1981, the authority handles responsibilities covering the development, administration, marketing and provision of adequate and efficient port services.
According to the AG Report, four items that failed to undergo an open tender include the construction of the supply base dock worth RM1.24 billion; project consultation at RM175.3 million; environmental monitoring, compliance reporting and coastal erosion monitoring at RM15.42 million; and consultancy, management and monitoring services worth RM29.02 million.
All four were also missing letters of intent as well as details of the negotiations.
The decision paper also carried a sole signature by the general manager, it added, rather than all members of the procurement board as required.
“Bintulu Port Authority’s failure to follow price negotiation procedures exposes them to the risks of power abuse and mismanagement.
“Without market research and cost estimates, Bintulu Port Authority was unable to ensure that this project had the best value for money,” it said.