POLICE FAILS TO IMPOSE FINES OF RM6.39MIL ON AIRCRAFT SUPPLIER FOR LATE DELIVERY

AG report: Police yet to impose fines of RM6.39mil for late delivery of five aircraft

KUALA LUMPUR: Police has yet to impose a liquidated ascertained and damages (LAD) worth at least RM6.39mil on suppliers for late delivery of its five Beechcraft King Air 350 aircraft.

In the Auditor General's report 2012, it was stated that police could impose fines for delays in delivering the five aircraft, which amounted to US$2.07mil (RM6.39mil) as of December last year.

In 2009, three of the aircraft were delivered between 15 and 100 days later than the agreed date, while another two aircraft, which were due for delivery in August 2012, had yet to be received at the time of audit.

In response, the Home Ministry said Tuesday, LAD had not been taken against the supplier as they had appealed against the action, and agreed to amend the contract to provide 10 supplementary equipment for the aircraft.

The company had also agreed to extend technical support period to 21 months for the first three aircraft, along with an additional six months for the remaining two from date received, at no extra cost to the government.

The ministry has also received an extension approval for 2011 to 2012 from the Finance Ministry without any order for LAD against the supplier.

Even so, the ministry will consider LAD in line with the latest approval letter from the Finance Ministry, dated Nov 22, 2012.

THESTAR