Costs for faulty military quarters soared to RM3.2b, audit shows

An image in the Auditor-General’s Report depicts raw sewage flowing from leaking pipes at a military housing unit.

KUALA LUMPUR, Oct 15 ― Military family quarters built by the Defence Ministry saw costs nearly double to RM3.2 billion amid a litany of defects including collapsed ceilings and leaking sewer pipes, according to revelations in the Auditor-General’s Report 2011.

Among others, the report found that the majority of the military quarters projects audited were awarded by direct negotiation and that the government waived penalties worth RM87.12 million for failure to meet contractual obligations.

“The waiver that was approved by the Ministry of Finance to the respective contractors caused losses and compromised the interests of the government,” said the report.

The audit team said that the financial performance of the military quarters projects was “unsatisfactory” as costs has shot up 84.1 per cent from the original allocation of RM1.74 billion.

Quarters examined by the audit showed that costs per unit ranged from RM260,000 at TUDM Subang and RM287,000 at Kinabatangan camp, to RM391,000 at Kementah camp and as much as RM1 million at TUDM Butterworth.

Explicit photos provided in the report showed sewage flowing on the floor due to leaky pipes at the Kementah camp quarters, a collapsed ceiling at the Subang TUDM quarters, and cupboard doors that cannot fully open due to a faulty design at Kementah camp.

One photo also showed quarters in the Kinabatangan camp in Sandakan being used by foreign workers and their families.

The report also said that stricter monitoring was required and contractors that failed to deliver should be blacklisted.

“In the audit’s opinion, the Defence Ministry should not accept family quarters that have defects and damaged construction that is so high that it causes members of the armed forces to live in premises that are not of quality,” said the report.

The audit also found that contractors failed to meet construction deadlines and were given extensions ranging from 94-1240 days.

According to the report, family quarters that were completed also had high levels of defects and contractors failed to rectify the defects within the warranty period.