THE Malaysian Anti-Corruption Commission (MACC) has begun investigation into the Sarawak’s Housing Development Corporation (HDC) over irregular payments to two contractors for what the Auditor-General in her 2016 report called a “non-existent repainting job” for 12 houses.

The A-G report also stated there was an “unauthorised advance payment” of RM16.06 million for the upgrading of a road in Sibu, which has incurred interest charges of RM1.77 million for the state government.

The probe comes after Sarawak Pakatan Harapan Youth on Thursday lodged a report with MACC in Kuching calling for a probe to check for funds misappropriation and leakages.

HDC has denied wrongdoing and said the RM2.88 million paid out was for maintenance work on 2,372 units of houses in its Permyjaya project in Miri and 816 housing units in Taman Dahlia in Kuching.

Sarawak Local Government and Housing Ministry permanent secretary Bakri Zaini, in disclosing the preliminary findings of a HDC probe into the allegations in the A-G’s report, said work at the Permyjaya public housing estate involved the repainting of houses, roof repairs, sanitary plumbing, vent pipe replacement, minor crack repairs and miscellaneous work.

He said the contract value of RM2.58 million included the repainting and repairs of 12 houses that were damaged by fire.

Bakri said RM300,000 was paid out for work to rectify the apron slab, repair the perimeter drain, re-wiring and related electrical works, fascia board replacement, fence repairs and miscellaneous maintenance work in Taman Dahlia in Kuching.

The A-G report also stated that HDC made payments totalling RM33.4 million to suppliers without verification by an authorised officer while six payment vouchers amounting to RM20.77 million were also not supported by payment certificates.

Bakri said HDC was giving its full cooperation to the ministry and the MACC.

Local Government and Housing Minister Prof Sim Kui Hian had on Friday warned that he would take disciplinary action against any officer found guilty of misusing public money.

Kelvin Yii, special assistant to Sarawak DAP chairman Chong Chieng Jen, said the millions of ringgit that were allegedly misappropriated could be used to repair dilapidated schools and medical clinics in rural Sarawak.

“That is why we are here today to lodge a report to facilitate and make it easier for MACC to open an investigation and that someone has to be held responsible for this mismanagement in the spirit of transparency and good governance,” Yii, said after lodging the report. – August 14, 2017.