22 November 2016
Sukhoi Su-30MKM (photo : MMP)
Unqualified contractors blamed for delay in Mindef's Sukhoi service centre project
PETALING JAYA: The construction of a RM73mil service technical centre (STC) for the maintenance of Sukhoi SU-30MKM fighter aircraft at TUDM Gong Kedak, Terengganu Air base was less than satisfactory, according to the 2015 Auditor-General's Report (Series 2).
The report revealed that a slow construction progress during the first 10 months which resulted in a takeover by a nominated sub-contractor on Jan 15 last year.
"The progress of the project within the first 10 months between March and Dec 2014, was not satisfactory as it only reached 3.3% progress compared to its target of 39.1% based on the actual working schedule," said the report.
The construction of the centre was part of the Government's obligation under a countervailing programme for the acquisition of Sukhoi SU-30MKM fighter aircraft which includes an issuance of aircraft components with the Federal State Unitary Enterprise (Rosoboronexport), Russia.
The project consisted of a hangar building, ADZ bay, POL store, AGSV/E garage, shelter, ramp service, apron area and a special equipment procurement site.
Western Equipment in the Sukhoi Su-30MKM Flankers of Malaysia (photo : Gempurwira)
The Defence Ministry (Mindef) on Apr 15 had engaged the Public Works Department (JKR) as the implementing agency for the project.
"The construction of the STC is to ensure that Sukhoi SU-30MKM fighter aircraft will always be at an optimum level to be operated during mission or training purposes," said the report.
The Ministry of Finance Malaysia (MOF) had appointed Sharikat Pembenaan Setia Jaya Sdn Bhd (SPSJ) as the contractor, with a contract value of RM71.49mil through a "Design and Build" approach.
"SPSJ was selected via a restricted tender process and a Letter of Award was granted on March 10, 2014 followed by a formal contract which was signed on July 7, 2014 within a completion period of 78 weeks.
The report noted that the appointment of an unqualified and financially unsound contractor had affected project implementation and progress.
"The second Extension of Time (EOT 2) was approved even though a Certificate of Non Completion (CNC) has been issued. However, construction works were satisfactory except for a few non-compliance, inadequacies, and defective issues which requires appropriate measures to be taken.
The report recommended that the Defence Ministry ensure that contractors be appointed based on their experiences, qualifications and capabilities to execute the project.
In reply to the Treasury, JKR had issued written warning letters, repeated warning to the contractors during site visits, monitoring coordination, and technical meetings.