KUALA LUMPUR: The management of Bintulu Port Authority (BPA) was not up to par as several acquisitions were considered to be unsatisfactory and there were weaknesses in, among others, direct negotiations as well as tender processes.
Auditor General’s Report 2016 Series 2 highlighted that the audit conducted in Sept this year saw weaknesses in procurement planning aspects including the project worth RM1.247 billion which was approved without thorough research.
Other than that, a total of three procurement worth RM1.452 billion were implemented without receiving a green light. Four acquisitions worth RM1.467 billion were not done through open tender and the direct negotiations were not approved by the Finance Ministry.
The report highlighted among the BPA’s other weaknesses were direct negotiations, tender process, the appointment of contractors and consultants as well as contract’s clause.
A supplemental agreement cost worth RM4.58 million, which was supposed to be borne by other parties and the duration of the Supplemental Agreement was also unreasonable, the report stated.
The BPA also did not attach supporting documents for several payments made to the consultants and the Development and Committee and General Manager did not comply with the directives of Board Directors to postpone supply base’s development work.
The report recommended the Transport Ministry to provide a Cabinet Paper to get a new direction on supply base project. It also recommended the ministry to direct BPA’s board director to form an internal investigation committee to conduct detailed probe on the usage of board director’s minutes of meeting No7/2016 and board of director’s Resolution dated on Dec 8, 2016 used to get supports for nomination of contractor, which was invalid.
Should there be criminal elements found in the procurement process, the BPA should report it to the authorities.
Final recommendation was that BPA should establish clear terms of reference by the Board so that each of its member can perform fiduciary duties effectively; and to order BPA to review its compliance and monitoring mechanism to reduce the risk of misconducts as well as increased control of its procurement.
Between 2014 and July, 2017, the BPA had managed 721 purchases worth RM1.481 billion.