PETALING JAYA: The National Sports Institute (NSI) acquired 23 horses worth RM5.66mil without approval from the Finance Ministry and none of the horses competed in two recommended international championships.
The acquisitions were made without any offer letter or agreement which would require clear stipulation of the responsibility of the supplier, said the Auditor-General's Report.
Moreover, payment to Syarikat El Rancho Country Club was made under the name of an individual.
“The 18 horses purchased at a cost of RM3.94mil did not qualify for the World Endurance Championship (WEC) 2008 because they failed to meet the requirements set by the Federation Equestre Internationale,” said the report.
This was because the horses did not receive adequate training or were injured since they were purchased two months before the competition.
All 23 horses also did not compete in the WEC 2010 and Asian Games 2010 as recommended by the Youth and Sports Ministry because the horses had been donated to the Government and non-government agencies.
The report said the NSI should have obtained approval from the ministry for the purchase and not make direct negotiations while payment should be made under the company's name.
In reply, the Treasury said the acquisitions were made because they needed the horses immediately.NSI had promised not to do it again.
The horses were released to various relevant agencies after a special WEC committee meeting.
Separately, the Auditor-General's Report revealed that about RM194.31mil or 72.1% of advertising space purchased by the Malaysian Tourism Promotion Board for 2009 and 2010 was conducted through direct negotiations.
Only 27.9% or RM73.8mil were purchases made through the tender process, the report added.
The report also revealed that despite registering a surplus in 2009 for the two divisions of advertising and promotional support, advertising projects needed to be cancelled because the surplus was used to cover the deficits of other divisions.
Related Stories: Catfish sausage factory yet to start business Govt agencies show better financial management performance Parliamentarians all a-Twitter over report Unopened boxes wasting space Dept paid RM11,800 for RM3,400 laptop and printer Stadium roof may collapse Nine ministries or depts overspent by RM3.73bil RM142mil satellite is 37km off target