Weakness in acquisition of sports equipment by MSNT: Audit Report

KUALA TERENGGANU: Weaknesses are detected in the acquisition of 56 sports equipment by the Terengganu Sports Council (MSNT) between June and September this year.
According to the Auditor-General's Report (AGR) 2016 Series 2, tabled in the Dewan Rakyat today, the equipment were acquired through direct negotiation.
"Acquisition through direct negotiation is not satisfactory because the procurement procedures are not fully complied with," it said.
The report also stated that between 2014 and 2016, a total of 20 procurement worth RM1.64 million were made through direct negotiation after obtaining exemption from the quotation process.
"An audit review on seven acquisition of sport equipment and tools through direct negotiation by MSNT found they were not through the Price Negotiation Committee which is supposed to be chaired by a Controllong officer or an officer empowered under paragraph 14 1PP PK7/2013.
"MSNT made the procurement by only obtaining the price quotation from several suppliers, like in the acquisition through direct purchase.
"The National Audit Department did find ant record which showed the setting up of the Price Negotiation Committee or the Price Negotiation Meeting was held. This showed that MSNT did not comply with the stipulated circular when making the acquisition through direct negotiation," it said.
The seven procurement involved equipment for 2015 and 2016 Sukma Archery Training, equipment for archery competition for the 2016 Sukma archery team, equipment for 2016 Sukma sailing competition, equipment for XVII Sukma shooting team, Sarawak 2016, supply of training uniform and official uniform for Terengganu contingent (Sukma XVII), Perlis 2014, and also for Sukma XVIII, Sarawak 2016.
According to the Auditor-General, the handling of the procurement was not satisfactory as the Price Negotiation Committee was not set up.
"The setting up of the committee is crucial to enable negotiation between MSNT and the suppliers to get reasonable and fair price, as well as best value for money," it said.