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Extra 2 billion RM for Mindef housing projects

My friend is a sub-contractor for National Housing Company Bhd (SPNB), he told me cost overrun is not an issue as long as someone in Finance Ministry is willing to sign a cheque for claims. Of course in return for their kindness, 5% kickback is a must.

The chain of corruption is like this, 5% kickback for Minister => 15% margin for main contractor => 15% margin for 1st subcontractor => 10% for Bangala and Indonesia 2nd subcontractor.

35% margin is gone by the time a housing project is reaching 2nd subcontractors. 2nd subcontractors have to cut corner to squeeze out razor thin margin with poor workmanship and materials.

Thus, such extra 2 billion RM budget for Mindef housing projects is not a news to me. This 2 billion RM is just changing hand to UMNO cronies through a legalized channel.

Side issue, the food ration in Mindef was terrible bad in 90s, I have to eat at outside stalls with own money.

‘Graft in military housing since 90s’
Syed Jaymal Zahiid | October 16, 2012

The Malay Army Veteran Association chief also claims previous contractors dished out contracts to cronies.

KUALA LUMPUR: Corruption involving military housing had been widespread since the 1990s, the president of the Malay Army Veteran Association (PVMT) Mohamad Ali Baharom alleged today.

Yesterday the 2011 Auditor-General report revealed that the Defence Ministry had spent a whopping RM3.2 billion for poor quality living quarters with a 84% cost overrun from the initial cost of RM1.2 billion.

The quality of the quarters was said to be marred with damages and construction defects causing safety concerns for occupants. Reparations were slow to come and low quality furniture was supplied.

The report also stated that the contractors failed to complete construction within the initial contract period and were given time extensions of 94 to 1,240 days.

“This issue has been around since I was still in the army. That was in the 1990s. It is blatant cheating (by the contractors),” Mohamad, better known as Ali Tinju, told FMT in a brief interview.

The PVMT president said similar complaints were lodged with Mindef on the poor quality of housing and suspected corruption in the process but the issue never got out into the open.

Mohamad alleged government-owned National Housing Company Bhd (SPNB) had also provided poor quality housing despite being awarded hefty contracts later distributed to politically-connected contractors.

SPNB implicated

“It was the same with SPNB. The houses were of very poor quality. I have visited the houses of the generals.

“They may look good outside but the interiors are rife with problems. They handed out the contracts to their cronies,” he said, adding that Mindef should rectify the problems and prosecute those involved.

The contractor implicated in the 2011 AG report was Syarikat USL, a joint venture of the Finance Ministry-owned Syarikat Perumahan Negara Bhd and the Armed Forces Fund Board Sdn Bhd.

The report described the company as “inexperienced” and “technically incompetent”. Mindef was censured and urged to ensure that it appoint only eligible and capable contractors.

The report also noted that although USL was fined RM87.12 million for the delays, the Finance Ministry waived the penalty following an application by Mindef.

In 2006, the same company was censured for sub-par delivery of an air force quarters project in Subang.

Despite the reprimand, no repairs were made. However, the report revealed, the ministry had nevertheless issued a “certificate of making good defects” to indicate that repairs had been completed.

The comment board with Facebook account.
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Azrai says:

How about Sistem Penguatkuasaan Automatik (AES) ?

kos pemasangan yang besar untuk pemasangan 831 kamera oleh kedua-dua pemegang konsesi yang didakwa bernilai RM600 hingga RM800 juta.

Ini bersamaan dengan RM722 000 hingga RM962 000 bagi setiap kamera. Adakah ia dilakukan melalui tender terbuka atau kedua dua pemegang konsesi ini memang kroni umno ????????

Jamri says:

AES untuk kroni dapat duit!

delia says:

utusan and Berita harian did not report this.

Azrai says:

Two weeks ago, Najib argued that successful Malaysian women risked making men “an endangered species”. He is wrong. What he meant was that Umno Malays are the world’s most protected species.

Didn’t Mahathir and Najib learn in school, that if you take an animal from the wild and domesticate it, the animal soon forgets to fend for itself?

Bred in captivity

Successive generations of Umno Malays have been bred in captivity and have become dependent on the food from their keeper. If released into their natural settings, Umno Malays will die. Like most caged animals, they have become lazy and obese. Their mental processes deteriorate because they lack the stimuli necessary for survival. Umno Malays could be weaned off their bad habits, but Umno will never allow that to happen.

If the zookeepers (Umno leaders) have no animals (Umno Malays) to take care of, then they are out of a job.

In today’s Malaysia, the fund for maintaining the Umno zoo is running low. The keepers have siphoned off most of the takings from the zoo. With food stocks running low, portions are small and feeding is erratic. The animals are distressed. They have been used to large meals, at any time of day, not just at feeding times.

These are dangerous times. The animals are waiting to pounce. One wrong move and the keeper becomes their next meal. Those of us watching from outside the cage would then be happiest. If Umno Malays refuse to be mentally liberated now, they run the risk of extinction.

Azrai says:

No wonder the call for ABU getting louder even among the Malays !

Only MCA supporters can live with the excesses by their UMNO cronies !!! So are you still one of them ?