Sunday, October 02, 2005

Systemic Failure Unfold Once Again




Failure is a form of success if the system has design-in the mode.

The Auditor-General’s Report 2004 is replete with examples of misuse and abuses of public funds. Here are some:
  1. RM285.68m Cost of Royal Malaysian Air Force simulator to train pilots flying the Hawk, F/A-18D and MiG-29 aircraft. Additional RM48.29m paid to a private company in July 2002 to conduct the training and maintain the simulator.
  2. RM105.98m Set aside by the Government between 2001 and 2004 for 32 landscape projects countrywide. Contractors and consultants engaged failed to abide by certain conditions, causing delays in the projects.
  3. RM89.33m Spent by the Government to build 17 Seri Malaysia hotels since 1994. Losses from operating the chain keep mounting every year.
  4. RM49.9m Marine Department (southern region) complex in Tanjung Pelepas to monitor traffic along the Malacca Straits delayed due to land acquisition problems, lack of transparency in the selection of contractors, structure not being built to specifications and funds released to the contractor not being in accordance with actual work done.
  5. RM1m The National Institute of Translation has close to RM1 million worth of translated books in its storerooms. There are no buyers for the titles published.
  6. RM32m Socso implemented a computerisation programme in 1996. Until today, the system cannot be integrated into its other systems.
  7. RM34.64m Spent between 2002 and 2004 to build and maintain Customs quarters and offices. More than 1,000 quarters remain vacant, with some being empty for the past 13 years.
  8. RM23.67m Spent (until December 2004) on a marine training base project in Tanjung Gerak, Langkawi, started in 1998. Project already delayed by 11 months.
  9. RM??m Maintenance of hospitals and medical equipment has been poor. Many medical items could not be used to poor handling and maintenance. Concessionaires and consultants did not perform as required in the terms of contract.

In the 2003 Auditor-General report, it was also revealed that the Government had to pay up to 36% above market price for certain medicines used in public hospitals and clinics.

The report revealed that 140 contracts worth $425mil were awarded during 2001 and 2003, 83 contracts worth $283mil (66.5%) went to ONE supplier while the balance were distributed among 11 others (33.5% spread among 11 companies).

Only a few companies had been accorded agent rights which led to monopoly of suppliers and the Government had no choice but to accept their bids.

Delays in processing tenders which could take up to 327 days, had also forced the ministry to pay more for medicines.

Analysing the 2003 and 2004 report, it must be noted that the wasteful events have been repeated each every year, without any sign of mitigation and corrective actions.

History keep repeating itself each and every year.

Is there anything wrong with our system?

The answer is: NO! It was design to produce the result as highlighted! You have to construed the system was a success as it does produce the result according to the design.

Is this another record for the Guiness Book of Records????

1 comment:

lucia said...

er... your last paragraph sound like an oxymoron.

"the system was a success as it does produce the result according to the design."

and the result was a failure.
:)