The report said as of July 2023, eight projects related to the RoL from the total 159 were still ongoing, with progress ranging from 21% to 97.3%.
It also said that contractors have yet to be appointed for two projects following a contract termination, while 12 projects have yet to begin. A total of 135 have been completed.
“The audit found that only 79.4% of the river beautification works has been completed, and only 50 out of 296 sewage treatment plants have been rationalised or upgraded,” the report said.
“The analysis also revealed that project delays have extended over eight years, resulting in increased costs for the government.”
As of December 2023, over RM3.9 billion had been spent on the RoL against the allocated ceiling cost of RM4.36 billion.
The RoL, which involves eight rivers located in the Klang Valley, comprises three components: river cleaning, river beautification, and commercialism and tourism.
The report also said that none of the objectives of the RoL has been achieved. One key objective, to improve river water quality, has been difficult to achieve due to weaknesses in planning and execution, low asset operation levels, poor compliance and low awareness of river care.
“The government’s goal to generate up to RM4 billion to fund the RoL and avoid using public funds has also not been met, as the revenue from land sales depends on individual landowners.”
The report said the lack of a comprehensive business model has also resulted in the maintenance and operation of RoL activities being entirely dependent on government funding.
“This deficiency has led to RoL assets being inadequately maintained, neglected, damaged and underutilised,” it said.
The audit likewise identified weaknesses in terms of project governance, including planning, expenditure monitoring, design preparation, consultant appointments, and project execution.
The report made several recommendations, including for the federal territories department to evaluate whether projects which have yet to be implemented should proceed, considering the costs involved in implementation and maintenance.
It also urged the department and related agencies to enhance on-site monitoring to ensure that the projects are completed according to the set time frame and specifications to prevent additional costs due to delays.
“The department, along with all related agencies, should immediately improve the existing RoL business model to address issues related to maintenance, damaged assets, and neglect.”