“It should be ensured that the infrastructure expenditure and port equipment purchases totalling RM163.67 million for the years 2004 through 2016 be referred to the state government or state infrastructure development ministry for solutions and to avoid disputes in the future,” it added.
The report also stated audits from January to April this year found the management of the port privatisation to be satisfactory.
The concessionaire has also settled all payments set out in the port privatisation agreement, said the report.
The Sabah Ports Authority is a statutory body under the ministry.
In 2003, a 30-year privatisation agreement was signed by the state government, the authority, Suria Capital Holdings Berhad and concessionaire Sabah Ports Sdn Bhd, which is a subsidiary of Suria Capital.
The privatisation was aimed at encouraging competition, increasing efficiency and service productivity as well as improving port facilities.
The report also said two of the three container ports recorded increasing delay time averages after the privatisation of the authority.
Cargo handling at private jetties were also not supervised or monitored properly.
Annual port financial statements and statistic reports prepared and submitted by the concessionaire without periodic valuation and discussion were not sufficient, the report stressed.
To help strengthen the management and achieve the objectives of the port’s privatisation, the report made several recommendations.
“A special committee should be formed to conduct periodic meetings to discuss the annual port financial statements and statistic reports so that port services’ performance can be improved and terms of agreement can be complied with.
“There should be cooperation with Sabah Ports Sdn Bhd for the preparation of comprehensive standard operating procedures that clearly spell out each party’s responsibility in monitoring private jetties so that activities there can be controlled properly.”
http://www.freemalaysiatoday.com/category/nation/2013/08/07/why-is-sabah-ports-lying/
http://www.freemalaysiatoday.com/category/nation/2013/12/17/putrajaya-eyes-lucractive-sabah-port/