THE Terengganu government wasted RM10.5mil buying 26 buses that had to be virtually grounded when it abandoned plans to use the new buses to ply urban and inter-district routes because of objections from existing bus operators.
The wastage occurred because the state government had failed to carry out a comprehensive study before implementing the project.
The Auditor General’s Report released on Monday said such studies were needed to avoid failure in meeting the objective.
According to the report, the state secretariat had in 2007 appointed two companies to supply the buses.
The state government had in February this year decided to distribute 18 of the buses to various agencies and departments.
The report also noted that a subsidiary of a government-linked company that was supposed to utilise the buses had no experience in the transportation business.
Based on the state secretariat’s report, the audit also found the cost of maintaining two Proton Perdana V6 was higher than the cost of procuring the vehicles.
A total of RM308,731 was spent on maintenance of the two cars that were originally purchased for RM234,054.
The Auditor was unable to analyse the cost of maintenance because the Malaysia Anti-Corruption Agency had seized the files on the two vehicles.
The Auditor has also uncovered unauthorised use of fuel cards by personnel in the state secretariat and the Public Works Department.
The Auditor has also called on the state government to monitor the activities of its companies to ensure they observe good corporate governance, abide by the law, make a profit and pay dividends to the state.
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