KUALA LUMPUR, 2 Oct: Any contractor who fails to complete their project by the stipulated deadline should be penalised or face legal action, said Datuk Raja Kamarul Bahrin Shah Raja Ahmad.
The Member of Parliament for Kuala Terengganu said that an advance should be claimed and given to the company of contractors qualified to carry out the project.
“Before a contractor starts work, the government must place an amount of money as a performance bond as a guarantee that the work will be carried out properly.
“If they fail to do so, it is the department’s duty to collect the money as compensation and given to another contractor to complete the project.
“If no action is taken, the contractors will not be afraid to return the payment,” he said at the Parliament lobby today.
He said this in reference to the Auditor General’s 2012 Report yesterday which reported failure by the Public Works Department (PWD) to claim RM4.89 million from banks or insurance companies for three projects which were cancelled.
The report mentioned that the balance of advances failed to be claimed is a project to upgrade the federal route 50, Batu Pahat-Ayer Hitam, Kluang, Johor by Pintasan Jaya Sdn Bhd worth RM3.41 million.
The other two are; the construction of dormitories and a dining hall at Sekolah Menengah Seri Nering, Besut, Terengganu by IT Industries Sdn Bhd worth RM780,000 and the construction of the UiTM library and hostel complex in Perlis by YMY Resources Sdn Bhd worth RM700,000.
Raja Kamarul Bahrin said that the delay in the Government reclaiming the money for the project may result in huge losses, especially if the contractor goes bankrupt.
“The Auditor General stated that nearly 50 percent of performance bonds have not been claimed.
“Assertive action must be taken to show the government’s seriousness in dealing with this matter because it involved public funds,” he said.