A good example…

Whither the rest, esp. Ministers…oh, want to verify the authenticity of the AG’s report first?

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http://www.malaysiakini.com/news/72686

MP wants to thrash out trash ‘mismanagement’

Tony Thien Sep 21, 07 3:10pm

A DAP legislator wants the Kuching City South Council to reveal the contents of the contract between it and a state-appointed private waste management company Trienekens (Sarawak) Sdn Bhd.

Bandar Kuching MP Chong Chieng Jen told a press conference in Kuching today that he had written to the council’s acting mayor Mohd Amin Hassan requesting for a meeting on the matter next week.

Chong was referring to the Auditor-General’s Report released recently concerning the privatisation of the waste management services by the council to the company.

Irregularities highlighted

The AG’s Report highlighted many irregularities and shortcomings in the privatisation exercise. Among these were:

1. The appointment of the contractor Trienekens was done without open tender which is against the Peraturan Kewangan Pikhak Berkuasa Tempatan 1997 perkara 169 dan 200 providing that all procurement of services or supply exceeding RM50,000 in costs shall be done by way of public tender.

2. Before privatisation, the costs of waste management to the council was only RM4.8 million per year.

Chong said after privatisation, costs of waste management to the council doubled to RM8.38 million in 2001, RM10.17 million in 2002, RM11.02 million in 2003, RM10.52 million in 2004 , RM9.99 million in 2005 and RM10.50 million in 2006.

In addition, 39 workers who were supposed to be seconded to Trienekens did not do so and the council continued to pay for their salaries and emoluments.

The DAP legislator said the purpose of privatisation was to reduce the financial burden of the council but this was not achieved at all.

3. The payment terms provided in the contract totally defies the principle of economy of scale.

Under the contract, Chong said, Trinikens shall be paid RM5.54 million a year, calculated at the rate of RM132 per ton for 42,000 ton of rubbish per year.

“If there is more than 42,000 tons of rubbish collected by Trienekens in one year, the charge to the council is RM199 per ton. In all business deals, the greater the quantity the cheaper will be the rate charged by the contractors.”

Free use of dump site

4. Before privatisation, there were thrice weekly collection by the council but after privatisation collection is now reduced to twice weekly by Trienekens.

“Even with the reduced service and increased costs, the AG found that there are several places where Trienekens did not provide regular rubbish collection services,” Chong pointed out.

The council, he added, had been allowing Trienekens to use the dump site in Matang outside Kuching free of charge when in actual fact the council was entitled to charge a fee.

Chong claimed services provided by Trienekens is not comprehensive as it should be as stipulated in the contract..

It did not cover garden waste, additional collection of rubbish during the festive occasions and those rubbish thrown at roadsides.

At the end of the day, the council still has to carry out the rubbish collection works for those not covered under the contract.

Given the irregularities and shortcomings, it was suggested in the AG Report that the council should review the contract as it is entitled to do so under the contract.