Redundant contracts sees Subang Jaya council overspending on spare parts

Low Han Shaun

THE Subang Jaya Municipal Council (MPSJ) has overpaid for tyres, car batteries and printer toners because redundant outsourcing contracts, according to the Auditor General’s Report for 2016.

MPSJ had overspent between RM100 and RM170 per tyre, RM45 and RM140 per car battery, and RM70 and RM162 per toner, said the first series of Auditor General’s report for 2016, which was released at the Dewan Rakyat today.

The report found that although MPSJ had a contract for the delivery of batteries and tyres to the council’s workshop, the installation of these replacement parts were still done at an outsourced workshop.

“Further checks shows that the price of the tyres and batteries from the original contract was much lower than the outsourced workshop,” it said.

For toners, MPSJ had a contract with a private company for the supply, installation and testing of printing equipment through the Smart Printer - Buy Toner Free Printer programme from July 2012 to July 2015.

“Through this programme, MPSJ has to buy toners from that private company at an agreed rate.

“However, upon audit checks, MPSJ was found to have outsourced another contractor for the supply of toners at a higher price, outside of the Smart Printer - Buy Toner Free Printer programme,” the report said.

In a reply to the auditor general on January 23, MPSJ said it had “taken action by preparing special forms” that required the council president’s signature for all outsourced contracts to “ensure that outsourced contracts can be minimised”. – July 31, 2017.

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