Auditor-General Nik Azman Nik Abdul Majid said among the weaknesses were contracts that had not been signed, late issuance of offer letters to tenants and inefficient rental management.
“Overall, the scheme was able to assist people without a home and who could not get a housing loan to rent a house provided by the state government at an affordable rate,” he said in a statement today to highlight the Auditor-General’s Report 2019 Series 2 on the activities of agencies and management of Selangor government-linked companies tabled at the state assembly.
However, he said the purchase of residential units under the scheme did not achieve the set target and an evaluation of the results had not been prepared by the housing and property board and Perumahan dan Hartanah Selangor Sdn Bhd to gauge the effectiveness of the programme.
He said the Klang Municipal Council’s objectives for solid waste collection and public cleaning services to improve the level of cleanliness and provide comfort to residents had yet to be fully achieved.
“Solid waste sanitary landfill sites were also inefficiently managed in terms of the operating agreements, where the contracts were delayed or not signed with the local authorities involved,” he said.
On the management of state government companies, Nik Azman said the objective of establishing Worldwide Holdings Bhd (WHB) had been achieved as seen in the residential development projects for the people of Selangor and environment management services.
“However, the Amber and Azalea projects, selected for audit sampling, had seen completion delays beyond the reasonable period of project completion according to Public Works Department standards,” he said.
Nik Azman said aspects of corporate governance were satisfactory though improvements were needed in terms of the functions of the chairman, board of directors, company secretary, standard operating procedures, audit committee, nomination and remuneration committee.
“WHB’s financial position has remained strong with a trend of surplus profit before tax and positive cash flow for three consecutive years,” he said.
He added that to enable improvement and corrective action to be taken by the related agency heads, the National Audit Department had submitted 11 recommendations to the relevant agencies.