PR1MA's finances stronger after rationalisation plan, says PAC

KUALA LUMPUR: The finances of 1Malaysia People's Housing Programme (PR1MA) has been strengthened after a rationalisation project was carried out, says Parliament's Public Accounts Committee (PAC).

The rationalisation project under the PR1MA 2018-2020 blueprint, which was implemented in 2019, lessened the financial exposure on gross development cost from RM23bil to RM14bil, said PAC chairman Wong Kah Woh.

"This meant less reliance on government grants for their projects," Wong Kah Woh said in a statement on Wednesday (Oct 6).

Owing to this, he said, the government will save an average of about RM735mil in development grants between 2020 and this year.

Wong added that the new approaches taken by PR1MA are a good example of optimising limited government resources.

However, he noted that cash flow problems and a sluggish property market had resulted in PR1MA paying RM53.72mil in late payments to contractors and landowners for five cancelled projects.

The five were the Residensi Parit Melana and Residensi Alor Gajah in Melaka, Residensi Batu Feringgi (Penang), Residensi Batu Rakit (Terengganu) and Residensi Kota Marudu 2 (Sabah).

He added that PR1MA had also given an extension of time for the Parit Melana and Alor Gajah projects without justification.

"This resulted in PR1MA failing to recover RM91.9mil in late delivery payments from contractors.

"This money could have been used to set-off other claims made by contractors," he said.

Wong also said the PAC recommended for PR1MA to strengthen its administration, including adhering to the rationalisation blueprint.

The PAC chairman's statement came following conclusions of the PAC inquiry into PR1MA, which was highlighted in the Auditor-General's Audit Report 2019 (First Series).

The AG's report was tabled in Parliament in December 2020.