Audit Finds Sabah Port Privatisation Satisfactory
KOTA KINABALU, Nov 27 (Bernama) -- The management of ports privatisation in Sabah is satisfactory following the capital injection of RM809.77 million by Sabah Ports Sdn Bhd (SPSB) which represented 103.3 per cent of the targeted RM783.76 million from 2004 to 2016.
According to the Auditor General's 2016 Report Series 2 tabled in Parliament today, the investment was used to upgrade facilities, build infrastructure and provide port equipment.
It also said Sabah Ports had settled all payments prescribed in the Port Privatisation Agreement (PPA).
However, the report also highlighted several weaknesses, among which was the failure to refer the capital injection of RM163.67 million for 2014-2016, which had not been included in the PPA, to either the state government or the Sabah Ports Authority (SPA) for a decision or approval.
It said two of the three container ports had recorded increasing delays in average container-handling time after the privatisation exercise and cargo-handling procedures at the jetty was not appropriately supervised or monitored.
The report also found that the preparation and submission of annual financial statements and statistical reports by the port concessionaire was without periodic assessment or discussion with the authorities.
To enhance the port privatisation management, the report recommended that SPA refer the RM163.67 million capital injection to the state government or Ministry of Infrastructure Development Sabah to prevent future disputes.
It also urged the SPA to establish a special committee to periodically appraise and discuss the financial statements and statistical reports submitted by the concessionaire.
-- BERNAMA
