RM100mil overrun on cost

For recommendation: Auditor-General Datuk Nik Azman Nik Abdul Majid (right) and Wong with the Auditor-General’s Report 2021 Series 1 to be tabled in the Dewan Rakyat. — Bernama

PETALING JAYA: It’s been 11 years, and the cost has shot up from RM520mil to RM626.1mil – but the upgrade and repair works on the Parliament building are still far from complete.

The work that was scheduled to have been completed in 2016 will now only be finished in 2025, says the Auditor-General in the Report 2021 Series 1.

According to the audit report, the project was to be implemented in several phases.

“This project has exceeded the completion target of six years. The first phase started in 2011 and (the project will now take) 14 years to complete, with the last phase expected to be completed by 2025 instead of 2016,” said the Auditor-General, who also pointed out the cost overrun of more than RM100mil.

The report said the temporary housing block and the MPs’ and administration blocks had yet to reach optimum usage levels.

It also found that the conservation work on the main block and design of the heritage facade on the new building did not receive any written comment or approval from the National Heritage Department.

The total of 171 variation orders and 126 contract price adjustments resulted in an increase of contract prices to RM447.4mil, noted the report.

The project’s cost ceiling had increased by RM106.1mil, from RM520mil to RM626.1mil, to cover the scope of work variation for phases 2B and 2C.

“Value management implemented in 2012 was less effective and was unable to control the cost and implementation duration of the project,” it said.

It said there were also delays of between 14 and 90 days to complete the original addendum to the supply of furniture contracts.

“There were no fines and penalty clauses in the furniture supplier’s contract to safeguard the interests of the government,” added the audit report.

It suggested that the Public Works Department needed to ensure comprehensive governance and effective monitoring to ensure the project is successfully implemented.

In response, the department noted that work for the final phase started on July 14 last year and is expected to be completed by Jan 8, 2025.

Wong Kah Woh stated that the PAC was also considering an investigation into the delay and cost overruns associated with upgrading and renovation work on the Parliament building.