SHAH ALAM, July 28 — The Selangor State Development Corporation (PKNS) is committed to ensuring that every finding and reprimand issued by the National Audit Department is taken into immediate improvement action, said its chief executive officer Datuk Mahmud Abbas.
He said in moving forward, PKNS has been and is taking action, including creating a special team to increase careful monitoring of work on site by contractors, consultants and privatisation companies.
“PKNS has also improved a number of recovery plan strategies to reduce the burden on cash flow, including implementing the concept of ‘sell and build’ real estate development while ensuring comprehensive risk management is carried out to avoid recurring issues,” he added.
Mahmud said there were several factors that contributed to the finding that real estate sales did not reach the target, among them the auditing years that were carried out from 2017 until June 2021 were a phase where the world real estate market was in a slow state due to an unstable global economy coupled with the effects of the Covid-19 pandemic.
“Buyers also find it difficult to get loans due to the strict regulations and guidelines by Bank Negara Malaysia, in addition, lending institutions and banks are very careful in approving loans,” he said.
He said PKNS takes note and views seriously every finding and remark from the National Audit Department for the improvement process, where PKNS has given feedback to all findings as recorded in the Auditor General’s full report.
He added that PKNS always upholds the principle of checks and balances, and takes seriously the best practices of corporate governance in every work process to ensure that PKNS real estate products are of good quality, safe and comfortable for all customers.
On Monday, the Auditor General’s (LKAN) Report on the Activities of the Selangor State Government Agencies and the Management of the State Government Companies Year 2020 Series 1, identified several weaknesses in the management of PKNS residential development projects.
Auditor General, Datuk Seri Nik Azman Nik Abdul Majid, in a statement, said that one of the weaknesses was that the performance of residential property development through the appointment of contractors was unsatisfactory because projects were completed late compared with the original schedule.
“The achievement and strengthening of cash flow for the sale of residential properties also did not reach the target because the revenue received was low compared with the cost of the project paid,” said Nik Azman.