The special internal audit report on MAPS in section 4.5.6 stated that towards the end of 2016, SDGM cash flow worsened and this affected the payments from SDGM to its subcontractors. This situation has a direct impact towards the progress on site as subcontractors has suspended their work.
ATP has decided to pay the subcontractors and issue LOU to selected subcontractors in order for them to continue their work.
Why did ATP need to bear SDGM debt after paying RM413M to SDGM to build the theme park? The audit report also stated that the issuance of LOU to SDGM subcontractors has caused ATP to bear unnecessary commitment which were supposedly not a concern for ATP.
ATP has issued fifty-three (53) LOU to thirty-five (35) SDGM subcontractors amounting to RM21M. As at the date of audit, payments amounting to RM10.92M has been paid and RM10.16M were still outstanding.
The authenticity and the accuracy for eighteen (18) LOU issued could not be confirmed as the statement of account(SOA) were not obtained from SDGM prior to the issuance of LOU to SDGM subcontractors.
I urge Zambry to explain the issuance of 53 LOU amounting to RM21M to SDGM subcontractors.