Sunday, August 31, 2008

RM110 Million Of Taxpayers Money Lost Due To Flawed National Service Contract

National Service shirkers and a very 'rigid' contract have caused the Government losses of up to RM110.1mil from 2004 to last year, the 2007 Auditor-General's report said.

Over the four years, the audit found that 63,417 people failed to attend the programme for various reasons, which led to the Government having to fork out the money to camp operators due to the way the contract was set out.

The contract spelt out that the Government would pay rent for the use of equipment and facilities for between 690 and 890 trainees for 2004 and between 300 and 400 trainees for 2005 and beyond.

The fee, per trainee, worked out to RM30 in the peninsula and RM41 in Sabah and Sarawak for 2004. In 2005, it cost RM25 in peninsula and RM34.30 in Sabah and Sarawak.

This meant that the Government had to pay for the stated number of trainees in the contract even if the number of trainees turning up was less or more than the figure stipulated in the agreement.

'Every year, between 16% and 23% of those called up to join the programme did not turn up. The ministry must review the contract conditions regarding how many trainees are allocated to each camp,' the report said.

It added that the ministry should also have a backup name list as there had to be a stop to the losses due to people not turning up for training.

'The NS Training Department also has to double-check its name list with the relevant authorities before putting out the roll call,' it said.

Among the reasons those called up did not attend were: a change in address, still studying, sole bread-winners, disabled, did not receive notices, died, overseas, in the army, health problems or have attended NS before.

In its reply, the ministry said it was in the midst of reviewing the contracts, adding that the department would be increasing the number of trainees next year to 140,000 to make up for any shortfall.

The audit also found that RM57mil in arrears had yet to be collected from camp operators for advances they had taken to construct the camps.

The audit also checked on certain camps from various angles such as the suitability of its location, cleanliness, food quality and quality of equipment supplied.

It found that the Beringin Beach camp in Langkawi was unsuitable because high tides often flooded dormitories and left a classroom unusable.

For the Wawasan camp in Sabah, camp operators told the audit team that it was difficult to obtain fresh fish to cook for the trainees but the audit team found it otherwise at the Kota Kinabalu market.

The audit also found that T-shirts, track pants, baseball caps and sports shoes supplied under contracts worth RM41.12mil were of low quality.

***** First the government has to release the names of the operators who have been given the jobs as well as those making a killing from transporting the students and then we will know how many of them are linked to umnoputeras. No one would be surprised if 100% of the contractors have Umno links.

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12 Comments:

Anonymous Anonymous said...

wanna know the names of the beneficiaries?
better if you ask who decides on the beneficiaries.
want to know? if you dont know by now, you must have just came back from mars.

11:49 PM GMT+8  
Anonymous Purple Haze said...

These contracts are similar to some of the IPPs "take-or-pay" contracts.

I'd love to have one like that too. How to get ?

12:33 AM GMT+8  
Blogger paulalan26 said...

Whats new? It has come to a stage where everything done and every single sen spent by the government is questionable. Simply put, the government has played itself into a situation where even the simple man on the street does not trust it anymore. Their eventual downfall will be their own doing.

During the live telecast of the recent debate between Anwar Ibrahim and that BN guy, i was in Kota Kinabalu, Sabah at a coffee shop having my maggi mee goreng. It was screened live on TV there and i was simple awe struck at the response of the packed coffee shop every time the BN guy spoke....They were visible pissed off and physically made their feelings known by table thumping, foot stomping and shouts of vulgarities that i cannot repeat here.

I strongly doubt if there will ever be another debate between Anwar or any other BN candidate ever. And we all know why dont we.

Iam no suporter of any political party in particular. I do vote and when i do i place my trust in he/she who i believe is most capable regardless of race or religion.

Back to the RM110 million tax payers money........iam not suprised and its nothing new...and the powers that be will continue to abuse their authority for the sake of profit.

What we need is a major overhaul. We missed that opportunity this year on March the 8th...well another couple of years isn't far off unless of course if Anwar and September the 16th is bang on schedule.

Frankly, theres no such thing as a bad organization...just bad leadership....we r currently a nation in urgent need of a good leader....iam not saying "Pak Lah" isn't good....hes good but just not good enough.

My apologies if iam speaking out of topic here...just like that BN guy during his live debate with Anwar. But iam just a lowly educated simple regular man on the street who knows next to nuts about anything but can smell a rat when theres one around. Smiles!!

1:42 AM GMT+8  
Anonymous Anonymous said...

Never Ending Plundering wot?

5:59 AM GMT+8  
Blogger kittykat46 said...

BUMNO loves to "negotiate" contracts with cronies where the Government (read taxpayer) carries all the risks.

9:44 AM GMT+8  
Blogger subzero said...

I hope the AG produces a report that can table and total all the bad investments, losses and mismanagement of public/taxpayers funds/monies since the beginning of the Abdullah administration. That would be interesting. I think the "RM110 Million Of Taxpayers Money Lost Due To Flawed National Service Contract" will look like loose change. Anyone out there disagree?

9:45 AM GMT+8  
Anonymous Anonymous said...

Anonymous,
I will bet my bottom dolar that the companies are all UMNO linked, one way or another. Bloody corrupted bastards.

11:04 AM GMT+8  
Blogger Loganimal said...

Notices were sent out to people who were "dead, in the army or have attended NS before"? How do you not know who attended NS already??

I think the program should be scrapped. It's not just 110 Million that is wasted, it is millions more that we spend on the program per se.

If you want racial unity and harmony, spend that on
a) improving schools - better education and more diversity, better teachers will to create better Malaysians and not just read off the text book
b) eradication of poverty - particular target ghettoized racial communities but raise the standard of living in general
c) a Malaysian Musical - nothing brings people together like musicals =]

4:07 PM GMT+8  
Anonymous Anonymous said...

Come on lah...we know that UMNO is "deeply" involved. Probably all the top boy have got their "cut"!
You think the Police, AG or ACA is going to do anything?!
To quote our AG "Insufficient Evidence"!

9:56 AM GMT+8  
Blogger dominic said...

Over the last 25 years or more, AG has been reporting this type of abuses where abuses have been made to tax payers money.

What's the use of making such reports every year or two when nothing positive comes out of it. The Govt. will make a positive statement everytime AG's report comes out, yet the abuse will continue.

Personally I feel the Govt either have lousy lawyers to draw up the contracts or was it intentional. Only God knows. With contracts that have been signed in favours of the contractors most of the time, we should know who the beneficiaries are. Isn't it?

10:41 AM GMT+8  
Blogger kopitelp16 said...

C'mon... what's RM110mil? It's just a small amount, we are economically strong, still attracting big foreign investments, inflation still very low, fuel cheapest in the region, government still strong.... nothing to worry! WE GOT LOTSA MONEY TO BURN!

It's a small price to pay to ensure bumi contractors can make a small living! I'm just a immigrant that 'happens' to be born here and holds a M'sian IC, so why should I question that?

10:54 AM GMT+8  
Blogger dano said...

Come on DSAI, form the next govt!

1:02 PM GMT+8  

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