What led to RM91.98 million in payments for discontinued projects?

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RM91.98 Million Paid Due to Discontinued Development of Malaysia Rubber Board Facilities

Approximately RM91.98 million was paid to the Malaysia Rubber Board's project delivery partner (PDP) and work package contractor as a result of the discontinuation of four out of five facilities being developed in Sungai Buloh. The Malaysia Rubber Board had allocated nearly RM100 million for the development of these five facilities.
Unused Funds for Discontinued Projects

The substantial payment of RM91.98 million was directly linked to the cessation of work on four of the five planned facilities. This expenditure represents a significant portion of the total investment made by the Malaysia Rubber Board in the Sungai Buloh development project, which aimed to establish multiple facilities.
Scope of the Discontinued Development

The Auditor-General’s Report for 2019 Series 1 highlighted that out of five facilities initiated by the Malaysia Rubber Board, four were ultimately discontinued. This led to financial implications beyond the direct payments to contractors, including an additional RM2.8 million paid to the PDP without a supplementary agreement and approximately RM1.53 million worth of unused equipment and software due to incomplete facilities.
Implications of Project Cessation

The discontinuation of these facilities resulted in considerable financial wastage. The Auditor-General's Report proposed more thorough project development planning to prevent similar scenarios in the future, alongside recommendations for orderly payment processes through signed agreements for cost changes and the repurposing of unused equipment and software to mitigate further loss.

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What led to RM91.98 million in payments for discontinued projects?

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