Tuesday, October 26, 2010


Stimulus funds used for chandeliers, home theatre, government audit shows

October 25, 2010 The Malaysian Insider
KUALA LUMPUR, Oct 25 – The Auditor-General has criticised the abuse of the first economic stimulus package (ESP) funds, citing as example the upgrading of the VVIP room at the Langkawi Naval Headquarters Region 3 (Mawilla 3) with RM301,900 worth of chandeliers, home-theatre systems, fancy wall paper and other luxuries.
Other abuses and wastages of the ESP found in the A-G's audit report tabled in Parliament today include RM459,460 for decorative outdoor lighting for the Lumut Naval Base and RM144,118 to renovate an existing canteen that was in good condition with new White Horse tiles, plaster ceilings and cornices.
The A-G noted in its audit report released today that the Defence Ministry was allocated RM250 million from the ESP for the purpose of restoring and maintaining military camps and quarters nationwide.
“The audit found that the Defence Ministry has made procurement of several items and works that are not in line with the original purpose and without clear justifications that lead to elements of wastage,” said the report.
It found that the home-theatre system at Mawilla 3 cost RM12,000 while the chandeliers cost RM10,000 and the wall paper RM95,880.
Other findings in the A-G’s report include the use of RM5.24 million worth of ESP funds meant to improve public transport but which was instead used for the salaries of new employees at Syarikat Prasarana Negara Berhad.
The RM7 billion ESP was launched in November 2008 to ward off the global economic slowdown due to the financial crisis.
Many businesses however have complained that they have not felt the effects of the stimulus package.
For its report, the A-G audited 18 programmes involving 1,129 projects worth RM495.48 million covering 11 ministries and government agencies in 2009.

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