PETALING JAYA: The Auditor-General has questioned the need for an additional allocation of RM50mil for the New Water Supply project in Malacca in 2002 when payment for the year only came to RM2.95mil.
According to the 2002 Auditor-General’s report for Malacca, the initial allocation of RM7mil was adequate and the additional allocation should have been channelled to finance the piping of raw water from Sungai Muar.
The report, which was recently tabled in Parliament, also criticised the transfer of RM16mil allocation from the Gadek/Lancang plant project to the Jus Dam project.
This, it said, was because the initial allocation of RM70mil was enough for the construction of the dam, which cost RM69.69mil.
The water projects were the largest component of the state development projects, which cost a total of RM148.8mil, the report said.
It said the state government had planned to implement 92 development projects, which were carried out by 12 departments.
Among them are a public low-cost housing project and a state sports complex.
The report also pointed out that an approved allocation of RM5mil for the Malacca State Development Corporation for small and-medium-scaled industries could not be used.
This was because the approved project was cancelled due to a lack of demand and no approval was given for its land application, it said.
On an additional allocation of RM8.32mil for administrative expenditure in seven state departments, the report said that the allocation was not necessary as the initial allocation of RM42.1mil was adequate to finance an actual expense of RM31.9mil.
The report also questioned the move to add and subtract an allocation of RM5.12mil in nine other state departments because they were done not in accordance with financial regulations.