Selangor Journal

KDN loses over RM6 mln from contractor’s failure to supply firearms

KUALA LUMPUR, Nov 22 — The management and supervision of firearms by departments and agencies under the Home Ministry (KDN) was deemed unsatisfactory, according to the Auditor-General’s Report (LKAN) 2022.

It said there are weaknesses in formulating policies regarding managing firearms and ammunition, alongside incidents of the loss of firearms owned by KDN departments and agencies.

There are also weaknesses in the enforcement of the Arms Act 1960 for the renewal of firearm licences which could affect the control of firearms by the Royal Malaysia Police (PDRM), while deficiencies in the management of firearm disposal could pose security risks.

“Contracts for the disposal of various types of old and worn-out weapons and accessories owned by PDRM were signed between the KDN and Company X on October 1, 2012, with the contract period until September 30, 2014.

“Clause Five of the agreement states the contract value is not less than RM7.5 million, referring to the Letter of Acceptance (SST) dated September 7, 2012.

“The company will supply weapons and accessories and conduct a two-day training as compensation for the disposal of various types of weapons,” stated the report, presented in the Dewan Rakyat today.

The audit review found that PDRM had gradually handed over various types of old and worn-out weapons and accessories between October 5, 2012, and November 11, 2014. However, in October 2014, the company only delivered accessories worth RM1.16 million to PDRM.

“The audit review found that KDN took no follow-up action against the company to ensure it fulfilled its contractual obligations, resulting in an estimated RM6.34 million in losses to the government,” it said.

In response, KDN said it had submitted a letter to the relevant company in June this year, demanding an immediate fulfilment of its contractual obligations. Failure to do so would result in legal action by the ministry.

“The KDN has established an Internal Investigation Committee to obtain detailed information and recommend appropriate actions against the parties involved. It will also make acquisitions through open tender and will not engage in firearm acquisitions through barter trade,” the report stated.

Similarly, inefficiently managed acquisitions resulted in PDRM not receiving the expected supply of firearms, and the government would incur losses if stricter actions were not taken to ensure the company fulfilled its contractual obligations.

The department recommended that KDN and PDRM ensure contract terms are fully complied with so the government obtains the best value for each acquisition made.

KDN and PDRM should also review legal aspects and actions which can be taken if the company fails to fulfil its contractual obligations.

— Bernama

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