Auditor-General Ambrin Buang said that 65 contracts for the procurement of LiDAR data collection services were signed by the Director of the Department of Land Management without proper authorisation.
“There was no proper monitoring of the broadband project. The terms of all contracts signed by Felda with Bumitouch Sdn Bhd and Skyline Access Sdn Bhd for the procurement of LiDAR services were incomplete and not detailed enough.
“Besides, important clauses were not included to safeguard Felda’s interest,” he said.
The report stated that the full payment of RM40.57 million for 53 out of 64 contracts with Bumitouch Sdn Bhd was made although the deliverables of LiDAR were not fully received.
The report also stated that the audit carried out between January and June 2016 revealed that the planning, implementation, monitoring and management of projects by Felda and its subsidiaries were not satisfactory.
The report also noted that there was no feasibility study and due diligence undertaken by Felda prior to the Sturgeon Fish Farming Project, Savaro Restaurant and Schneeballen Pastries projects.
This has caused Felda to suffer losses amounting to RM73.63 million.
Ambrin said that there was no approval from the ministry for the establishment of 4 subsidiary and sub-subsidiary companies for the projects.
In his recommendations, Ambrin proposed that Felda should plan its procurement and management of projects comprehensively to ensure that they are carried out properly and avoid wastage.
“Felda should carry out feasibility studies and due diligence before participating in any investment and projects. Felda should adhere to the procurement and payment procedures to ensure the effectiveness of internal controls and good governance,” he said.
Ambrin added that Felda’s Regulatory and Supervisory Unit of the Prime Minister’s Department should ensure activities carried out by Felda are implemented in an efficient and proper manner to meet its objectives.
“Felda should take disciplinary action or surcharge on officers responsible for any actions which violate regulations and laws,” he said.