AG report: Mismanagement causes delays in handover of rent-to-own projects

According to the 2018 Auditor-General’s Report Series 3 report, the handing over of RTO projects to the National Housing Department were delayed due to contractor weaknesses and unclear work processes.

“There were delays in handing over the project to the NHD whereby the Housing and Local Government Ministry took between 23 and 866 days to hand over the completed projects to the NHD for tenants to occupy. As many as seven projects took between one and 40 months to be occupied and as many as 1,880 units or 33.4% were unoccupied, said the report released on Tuesday .

The audit also found that the PPR tenants were dissatisfied with their residence and facilities, especially with regards to the building quality, the process of filing damage complaints and repairs on defects reported. There are 148 units at PPR Taman Siliau Jaya, PPR Taman Danau and PPR Gua Musang which have remained unoccupied by tenants despite offers being made to them.

It found that the appointment of five developers for the PPAM Putrajaya project was not made in accordance with the procurement procedure through a Request for Proposal .

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