These weaknesses are in relation to the sale of land, applications and monitoring.
These have jeopardised the overall efficiency of the programme, the second series of the 2016 Auditor-General’s Report said.
It noted that land for three projects had been sold to parties that were not credible and not supported with clear justifications.
The report also stated that there was no proof to show that a sale-based land evaluation had been carried out for Residensi Desa Satumas, resulting in Kuala Lumpur City Hall’s offer price of RM24.07 million to be below the market.
“Also, the development charge exemption, totalling RM3.68 million for 274 freehold units (pangsapuri harga bebas) of Residensi Gurneymas, is not in line with Rumawip’s policies,” the report stated.
The second series of the report was tabled in the Dewan Rakyat today.
The audit also found that in managing the development of Rumawip, no comprehensive guidelines were laid out.
The report stated that comprehensive guidelines would contain, among others, the determination of Rumawip sites; the management of land sales, if it involves government land; a mechanism to evaluate the proposals of the development and choosing qualified developers; the application process; filtering and offering as well as monitoring of sale and purchase of Rumawip units.
“These are important for implementing agencies carrying out this programme.
“Our audit has found that only the Rumawip policy and an application flowchart were laid out as a guide for implementation.
“Both did not state a detailed work implementation procedure, such as the implementation period.
“The absence of such guidelines resulted in the programme being carried out based on present practices and this has jeopardised the effectiveness of the programme,” the report said.
Current practices would entail the developer determining the sites to develop Rumawip units by applying for land acquisition from DBKL.
The programme, which is an initiative under the Federal Territories ministry, aims to provide 80,000 affordable housing units in the federal territory within five years, from 2014 to 2018.
The price of a Rumawip house is capped at RM300,000.
According to the report, the ministry successfully provided 52,562 (107.3%) units compared with 49,000 targeted units between 2014 and 2016.
Resale freeze on FT affordable housing scheme still 10 years