Auditor-General’s Report: Angkasapuri Complex redevelopment "less satisfactory".

PETALING JAYA: The implementation of the Redevelopment Project of Angkasapuri Complex as Media City by the Communication and Multimedia Ministry (K-KOMM) is less satisfactory, according to the Auditor-General’s Report 2021 Series 1.

The Report said this was because only one out of the three projects has been completed so far.

The results of the poor development of the project has caused the state broadcaster, Malaysian Broadcasting Department (RTM) to lose viewers and listeners of its TV broadcasts and radio channels in 2021 compared to the previous year.

“The delay in the completion of the project has caused losses on the part of the government in terms of staff discomfort, limited storage space, delays in the use of facilities and new buildings that should have been occupied and used earlier.

“The selection of the concession company with unstable financial positions has adversely affected the government and resulted in delays in project implementation,” the Report said.

The redevelopment project was proposed by the government in 2009 where RM2.406bil of funding was approved under the 11th Malaysia Plan.

Two main components, namely the construction of new buildings and the supply of broadcasting facilities under the Private Finance Initiative (PFI) model were involved in the project.

This project involves a total cost of RM860mil consisting of three agreements, namely Lease Agreement 1, Lease Agreement 2 and Concession Agreement.

It also involves the exchange of 11.3 acres of land worth RM137.19mil.

The project also aims to upgrade two existing analogue transmission channels to 10 Digital TV channels and to upgrade broadcast production from Standard Definition to High Definition.

“For the element of upgrading the existing two SD analogue transmission channels to 10 HD Digital TV channels has been achieved.

“Outcome performance has not been performed because the project is not yet fully completed,” it said.

Other weaknesses include the prolonged extension of Condition Precedent which resulted in the delay of the delivery and inefficient maintenance services of the concession company that could disrupt broadcasting.

The National Audit Department recommended that K-KOMM and the Public Private Partnership Unit (UKAS) to ensure that the selection of the concession company is based on guidelines.

“This will ensure the selected company is able to implement the planned project without financial and management problems.

“UKAS needs to provide a clear guideline on the setting charges and payment to ensure that the government gets value for money,” it said.

The ministry and RTM were also advised to ensure that matters related to governance are comprehensive and effective, especially in the aspect of maintenance management.

In response, K-KOMM said the ministry will ensure the proposal of companies for future projects will be based on the guidelines set by UKAS.

On the declining viewership and listenership, K-KOMM said RTM is working to increase its TV and radio ratings through its Strategic Plan (2021-2025).

It said the decline of viewers in 2020 and 2021 was due to Covid-19 pandemic that resulted in the lack of production of fresh content.

“To increase the viewership and listenership, RTM is planning a study on improving its content and broadcast line for its TV and radio in accordance with its target audience,” the ministry added.