Water supply projects in Sabah, Sarawak failed to meet objectives, says A-G’s report

KUALA LUMPUR (July 4): Water supply disruptions in Sarawak and Sabah, poorly managed, continue to deprive rural residents of access to clean and treated water.

According to the 2024 Auditor-General’s Report Series 2, rural water supply projects (BALB) in Sarawak and Sabah have failed to meet their objectives.

“As a result, there are significant shortcomings in the functionality and execution of these projects, failing to meet the health and quality of life standards that were originally set and are not quantifiable.

“The project’s achievement targets have also been inconsistent, having been revised downwards from their original goals without adequate justification. There were also completed projects handed over to the State Governments that often went unused and neglected, with allocated funds left unspent during the respective years.

“The lack of regular maintenance and delayed asset repairs have severely impacted water supply operations and the lifespan of critical assets, resulting in financial losses to the Government and rendering water supplies unusable for the local populace,” the report stated.

The report also stated that as of October 2023, there were still 36 projects in Sarawak and Sabah, approved in 2016, 2017, and 2018, with a combined cost exceeding RM1.5 billion, yet to progress past the planning stages.

Meanwhile, an audit review of the budget report on the Rural and Regional Development Ministry’s programmes and performance for these projects found that the remaining allocations for the Sarawak BALB Reticulation Project in 2017 totalled RM1.24 million, and RM4.98 million for Sabah in 2020, which did not accurately reflect the actual remaining balances for those respective years.

“If these allocations were not disbursed to the Rural and Industrial Development Authority (RISDA), the actual remaining allocation for the Sarawak BALB Reticulation Project in 2017 amounted to RM13.24 million, and RM102.54 million for Sabah.

“This has implications for the budget report on the ministry’s programmes and performance concerning the Sarawak BALB Project, which requires submission to the Finance Ministry, where expenditures have been recorded higher than actual, and balances noted at lower amounts since 2017 for Sarawak BALB and since 2020 for Sabah,” the report stated further.

To address these deficiencies and prevent future recurrences, the AG’s report recommends that the ministry reviews and refines the targets and objectives of these programmes to be more realistic, measurable and consistent with achievable implementation capabilities.

“Improving existing guidelines to be more comprehensive by considering coordination with state governments through discussions on related issues before and after project commencement, including enforcement and maintenance aspects.

“Ensuring financial management and control are implemented by maintaining accurate allocation and expenditure records and spending according to needs and regulations,” the report stated. – Bernama