Felda project fails to meet target


  • Nation
  • Tuesday, 03 Dec 2019

KUALA LUMPUR: The performance of the Felda New Generation Housing Project (PGBF) is a disappointment because only 1,498 houses were completed as of April 30, 2019, compared to the target of 20,000 units for completion in five years from 2013, according to the second series of the Auditor-General’s Report 2018.

This was among the findings of the audit conducted between March and June this year.

The report said the objectives of the project had yet to be fully achieved because the targets of the number of houses to be built and number of houses to be handed over were not met, while the ownership agreements of houses which had been handed over had yet to be signed.

According to the report, in the aspect of the project’s management, there were weaknesses in financial management, project planning, appointment of project contractors, administration of contract and monitoring.

Among others, the process of land ownerships of six PGBF projects which had obtained the Certificate of Completion and Compliance (CCC) had yet to be completed.

The audit also found that all the 37 PGBF contractors appointed started their construction works as soon as the Letters of Acceptance (SST) were received without obtaining the Planning Permission approval first.

At the same time, according to the report, the monitoring conducted was not effective and this was clear based on the poor construction quality, problem of land erosion and absence of security measures in several projects visited.

As such, the report recommended several measures which must be taken by Felda which, among others, is ensuring that the source of fund for every project to be implemented is identified to avoid the problem of no allocation and late payments to contractors.

In addition, Felda must ensure every project is carefully planned specifically by conducting feasibility study and due diligence to boost project implementation efficiency while the projects must be monitored by those officers with technical expertise to avoid total dependence on the consultants.

At the same time, the Felda board of directors must carry out their responsibility transparently, complying with currrent government and internal regulations which were in force, and setting up an Internal Investigation Committee to investigate non-compliance of its officers in managing acquisitions.

In addition, Felda must ensure the aspect of contract administration especially linked to the approval of time extension, preparing of insurance policies and implementation bonds be carried out in an orderly manner so that the interest of Felda is protected.

PGBF was announced by the government in the Budget 2013 speech, namely, 20,000 houses would be built in five years from 2013 to give the opportunity to the new Felda generations to own suitable affordable homes.

The project was implemented via the design and build concept using the Industrialised Building System method on 2,023ha of Felda scheme land. — Bernama

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