According to the Auditor-General’s Report 2017 presented in Parliament today, an audit also discovered that the number of RMR1M houses constructed as of Dec 31, 2017, had not reached the target.

“Only 24,057 units have been constructed, while 8,145 were being built, instead of the 44,152 which should have been constructed.

“Payments to contractors was not according to the schedule and the quality of the RMR1M houses also did not meet the specifications,” said the report.

The RMR1M is one of the two categories of houses built under the scheme by Syarikat Perumahan Negara Bhd’s subsidiary, SPNB Mesra Sdn Bhd.

According to the report, SPNB Mesra Sdn Bhd’s overall practices were satisfactory and its overall financial position was stable, although the company recorded losses between 2014 and 2016.

“However, there is still a need to improve in terms of the composition of its board of directors, the preparation of business plans, payment of fixed allowances, meeting allowances and chairman’s perks,” it said.

The report also suggested for SPNB Mesra’s board of directors to consider using the subsidies for the construction of RMR1M’s homes to reach the target.

“The directors should also review the prices offered to contractors in accordance with the latest market prices and to pay them in order to help empower Bumiputera contractors,” it said.