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The Management of Home Construction And Refurbishment for Flood Victims

The Management of Home Construction And Refurbishment for Flood Victims

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The Management of Home Construction And Refurbishment for Flood Victims

Financial Loss

Impact on Public

Summary:
Misappropriation of funds in building 1395 Housing Units. The government has allocated RM500 Million to the National Disaster Relief Trust Fund

80%

PROBLEMATIC

User Rating: 2.1 (3 votes)

The National Security Council [Majlis Keselamatan Negara (MKN)] is an agency as a national focal point for national disaster management. Beginning 26th August 2015, The Government has established the National Disaster Management Agency [Agensi Pengurusan Bencara Negara (APBN)] to replace every MKN‟s functions and responsibilities. APBN is responsible for coordinating and developing the management on national disaster. This is to ensure all policies and mechanisms of national disaster are complied and implemented at each and every levels. The national disaster management was implemented according to MKN Directive No. 20. It includes policy and mechanism which contains framework strategies, directives and action plans in the management of national disasters. The allocations and expenses for national disaster were managed under the National Disaster Relief Trust Fund [Kumpulan Wang Amanah Bantuan Bencana Negara (KWABBN)]. At the end of the year 2014, there were 5 States namely: Kelantan, Terengganu, Pahang, Perak and Sabah have been stricken by great floods. These floods caused fatalities, damages/losses of homes as well as distress to victims involved. To support flood victims to begin post-flood lives, the Federal Government has allocated funds amounting to RM500 million through KWABBN. The objective of this funding to aid the flood victims for their losses/damages.

The audit performed between September to November 2015 in 5 states involved revealed that preliminary process for recipient selection and verification, appointment of contractors, work executions and certification in addition to payment procedures for new permanent home project [Rumah Kekal Baharu (RKB)] and restoration works have met the stipulated Government directives in a fast-track manner. However, there were several issues that could jeopardise the efficiency and effectiveness of this project as follows:

i. the overall performance of the home construction project is less satisfactory. A total of 557 (40%) out of 1395 RKB‟s units was incompleted resulted flood victims were still staying in transit homes, tents and so on;

ii. non-updated information on RKB‟s recipients and restoration works in the flood management information system (ePASCA BANJIR) lead to unrealiable and non-integrity of the data and system;

iii. non-eligibility for 54 RKB‟s recipients and restoration works requirements. Among of such noncompliance where house were not considered as total loss, unoccupied residence, rented houses, shop lots and non-resident owners;

iv. non-assistance on RKB‟s project or restoration works for 36 flood victims despite of their houses were destroyed or damaged by floods. These nonassitance requires rigirous actions and attention by relevant authorities;

v. less effective on the implementation of RKB‟s project and restoration works. Among highlighted issues were the compliance with set design; inability of contractors to complete the RKB‟s project; abandoned projects and appropriateness of project site;

vi. 109 houses for restoration works were out of scope. These include repairs of stores and barn; construction of new wall and garage; paint jobs for brick gate; roof replacements on houses unaffected by floods and installation works for grilles, fan, cabinets and ceiling; and vii. Unoccuppied or unutilised of 17 constructed and repaired houses for flood victims due to unwillingness to move, problems in providing basic utilities and the non-official handover.

2 Comments on this Post

  1. The Federal Government has allocated funds amounting to RM500 million through KWABBN to aid the flood victims for their losess/damages. However, based on the report, tgere were several issues that could jeorpardise the efficiency and efffectiveness of this project (paragraph b.i to viii). In my observation, the issues higlighted by the report are weird. For example, although RM500 million had been allocated to aid flood victims, 40% of RKB was incomplete. Furthermore, there were only 1395 RKB’s recepient, but non-updated information on RKB’s recepient was one of the issues posed by the report. There should be check and balance in this project to ensure that a public interest remain protected.

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  2. Silver edge

    It was identified such as professional fees no.1 paid to 2 consultants amounting to RM0.19 million for the supervision of construction was approved without contract. A huge amount of money was paid to 2 consultants agency without any standard or legal contract, and the Ministry was unable to explain clearly how the consultancy fee are charge in the project, so it’s obvious that corruption may occur. Furthermore, for a construction of primary school wasn’t a huge project however it requires 790 days extension of time and yet it was approved by the Ministry due to delay in approval of Variation order. I think they should enhance in monitoring on contract management and extension of time.

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