What discrepancy exists in solid waste collection frequency rates?

Question

Accepted Answer

Solid Waste Collection Frequencies and Rates Deviated from Concession Agreements

Auditors have identified significant discrepancies between the contracted solid waste collection frequencies and rates stipulated in concession agreements and those actually implemented and paid for in Kuala Lumpur, Putrajaya, and Kedah. These deviations, occurring between January 2017 and April 2020, resulted in overpayments by the Solid Waste and Public Cleansing Management Corporation (SWCorp) to its concessionaires, totalling RM386,381.90 based on the Auditor-General's Report 2019. The core issue lies in payments being made for services that exceeded, or were not defined by, the terms of the concession agreements.
Frequencies and Rates Exceeded Contractual Terms

The standard frequency for residual solid waste collection was established as twice a week, with an additional bulk collection once a week (2+1) for a single residence at a rate of RM14.80. However, audit reviews uncovered instances where services were provided up to seven times a week. In Kedah, for village residential houses (RB2), a frequency of 14 times per week was recorded, with a rate of RM375.38 applied between January 2017 and May 2018. These specific frequencies and associated rates were not detailed within the concession agreements, nor were they included in the concession work schedules, indicating a departure from the agreed-upon operational framework.
Payment Basis Did Not Align with Agreements

Further examination revealed that for various residential and business categories, including RB2 residential houses, multi-storey shophouses (CK2), and designated business centres (CK4) in Kuala Lumpur, Putrajaya, and Kedah from 2017 to April 2020, the rates paid were not contingent on the type of barrels provided or the actual frequency of collection. Instead, the rates applied were not those outlined in the concession agreement. This mismatch between billed and contracted rates, coupled with the increased frequencies, led to an overpayment situation where concessionaires received more than what was contractually due.
Lack of Adherence to Contractual Framework and Oversight

The discrepancies arose from several factors, including a failure to adhere to the rates and frequencies specified in the concession agreements. SWCorp acknowledged that some cases have been rectified, while others remain under investigation. Contributing factors identified include the restructuring of collection routes by concessionaires due to overlapping compactor truck routes, and a failure by staff to adequately check payment recommendations. Poor contract administration, leading to the preparation of quotations that did not comply with the concession agreement, and inadequate spending controls were also cited as reasons for the overpayments.

Reading history

Hide →

This history is cleared when the page is closed.

What discrepancy exists in solid waste collection frequency rates?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends