My 13th question to Zambry – Why did Zambry allow ATP to sign a RM22M supplementary contract to expand MAPS when the original RM306M Turnkey Contract has not been completed?

The Special Internal Audit Report on MAPS revealed that a RM22M supplementary contract no. 1 has been signed to expand MAPS even when the original RM306M Turnkey contract has yet to be completed.

It was stated in section 4.3.2 in the Special Internal Audit Report that the decision to proceed with the supplementary contract no. 1 was made only based on presentation by SDGM without being supported by any study or review on the potential and benefit of the proposed enhancement on the rides and attraction to MAPS as a whole.

During the presentation, SDGM highlighted that the original development of MAPS as per the RM306M Turnkey contract has 98,118 units of entertainment. As a result of limited budget, the project was scaled down by 23.6% to 75,772 units of entertainment. Hence the need for the enhancement, argued by SDGM.

By allowing SDGM to carry forward certain rides and attractions from the Turnkey Contract to the Supplementary Contract No.1 would mean that the whole project cost is being unnecessary inflated.

This has caused ATP to spend another RM22M on the supplementary contract no. 1 where part of the rides and attraction were previously stated and agreed in the Turnkey Contract.

The Special Internal Audit Report also conclude that having an expansion plan prior to the completion of the original plan as well as before the opening of the park would indicate poor planning of the original plan.

Zambry must answer why did he allow ATP to sign a RM22M supplementary contract to expand MAPS when the original RM306M Turnkey Contract has not been completed? He must fully explain why did he allow ATP to be bullied by SDGM and not to insist on what has been agreed in the RM306M turnkey contract which originally has 98,118 units of entertainment.

Is this due to poor planning or a concerted effort to inflate MAPS project cost so that more money can be transferred from ATP to SDGM?

Chong Zhemin
Chairman of the Audit Committee Perak Corporation Berhad & SA FOR KERANJI
Media statement by Chong Zhemin in Ipoh on Friday, 5th April 2019