PETALING JAYA: Universiti Malaysia Kelantan (UMK) split certain procurements into smaller amounts to avoid dealing with procedures.
The Auditor General’s report (second series) revealed that the university’s procurement management guideline did not incorporate procedures for works procurement and contract administration.
“A total of 31 procurements for supplies and services worth RM243,613 were split into smaller amounts to avoid procedures on price quotation.
“Also, 33 procurements worth RM904,216 were made through direct purchase, even though each purchase was above the permitted limit of RM10,000,” the report stated.
About 18 local purchase orders amounting to RM267,713 were issued after the supplies and services were received between one and 28 days.
The report also highlighted three works procurements for developing the parks and recreation lake project at UMK’s Bachok campus. The total amount of RM946,520 was split into smaller amounts to avoid tender procedures.
As a result, performance bonds, public liability policy and workmen’s compensation insurance were not prepared for the works.
“Besides that, a penalty of RM36,990 was not imposed on the contractor for failing to complete the works on time, and there were no applications for extension of time and variation orders submitted to the superitendent or university quotation committee for approval,” the report said.
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