According to the report released today, the equipment was not received by Istana Budaya because the supplier appointed by the company had stipulated that delivery of the equipment and services would only be made after full payment had been made.

The report also revealed that equipment worth RM4.79 million was received 448 days late, after the company’s contract was terminated on Oct 20, 2017. It was then replaced by another company, which was appointed to continue with upgrading of the control and automation system at Panggung Sari in Istana Budaya.

In this regard, several recommendations were submitted to Istana Budaya, among them to ensure that the liquidator includes the new company in the priority list of creditors for immediate settlement of debts amounting to RM6.08 million.

Apart from that, Istana Budaya was asked to ensure that equipment, worth RM4.79 million, is installed and fully optimised to prevent it from becoming obsolete and unusable.

The ministry signed a contract, worth RM34.22 million, with the first company on Nov 10, 2016, for work to upgrade the stage control and automation system at Panggung Sari through direct negotiation.

The contract, which took effect on Nov 15, 2016, was terminated on July 15, 2017 because the company was unable to deliver on the contract.