Weak contractor reason for delay in KTMB project

KUALA LUMPUR: The Public Accounts Committee (PAC) found the delay in the project to shift Keretapi Tanah Melayu Bhd (KTMB) railway operations from Tanjong Pagar to Woodlands, Singapore, and the construction of the Kempas Baru depot, Johor Baru, was due to the contractor's weakness.
Its chairman Datuk Nur Jazlan Mohamed said the Malaysian and Singapore governments' collaboration project was scheduled to be completed by July 16, 2013, but until March (this year) the project was only 99.2 per cent completed.
"The construction of the Kempas Baru depot worth RM41.77 million was given to Hisniaga Sdn Bhd through a limited tender for which a contract was signed on Dec 20 2011 and scheduled to be completed originally on July 16, 2013.
"While the Woodlands station renovation project in Singapore worth S$980.669 is until now still not fully completed," he told reporters after chairing a PAC meeting at Parliament House today.
Nur Jazlan said the Ministry of Transport had twice extended the project for a period of two years since last year and imposed a penalty rate and Stipulated Damages (LAD) amounting to RM2.5 million on the contractor.
He said the PAC also found the contractor was negligent in carrying out work on the transfer of optical cables and land management in addition to failing to complete the project promptly.
"We have also asked the National Audit Department to conduct audits on other projects under KTM to ensure project compliance and selection of responsible contractors," he said.
At the meeting, Nur Jazlan said PAC advised KTMB to ensure that project planning was done more carefully and to select reputable contractors so that construction can be completed within the stipulated period.
Meanwhile, he said the Auditor General's Report 2014 Series 1 will be presented on Monday (April 6). – Bernama