Defence ministry to monitor contract performance with new system
Deputy Defence Minister Adly Zahari announced the move following findings in the Auditor-General's Report (LKAN) 2/2025, which identified weaknesses in enforcing contract terms, particularly regarding late penalties.
Under the current system, penalties for delays are only imposed when extension of time (EOT) applications are reviewed, even though enforcement could occur earlier.
Adly explained, 'An EOT should come with two scenarios — either with or without a late penalty.
'Sometimes EOT is granted without a penalty due to technical issues... but I believe if an EOT is to be granted, we can enforce it with a penalty.'
The ministry has already taken action against delays in the delivery of 68 Gempita armoured vehicles and two non-armoured type B vehicles between 2020 and 2023.
A late penalty notice of RM162.75 million was issued on Jan 15 to the supplier, who later appealed for a waiver citing force majeure due to the COVID-19 pandemic and the Russia-Ukraine conflict.
Adly stated, 'The appeal was presented at the Contract Coordination Panel (CCP) meeting on May 6 and it was decided that the company would be subjected to the full late penalty of RM162.75 million.'
Additionally, the ministry is recovering RM53.93 million from the performance bond and will claim the remaining penalty through set-off or direct collection.
Regarding procurement via the 'breakdown' method involving RM107 million, Adly clarified that logistical challenges and varying technical expertise necessitated the approach.
'Our assets are located in places like Kota Belud, Sabah, and Port Dickson and Gemas in Negeri Sembilan, among others. That is why in this breakdown approach, we took into account those aspects, as well as the readiness of the assets,' he said.
The new monitoring system aims to streamline contract enforcement and ensure timely project completion while safeguarding national security interests. – Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
9 hours ago
- The Sun
Leading with Purpose: ESET Puts Pamela Ong in Command as Singapore's Digital Economy Accelerates
SINGAPORE - Media OutReach Newswire - 6 August 2025 - ESET, a global leader in cybersecurity, has announced the appointment of Pamela Ong as Country Manager for Singapore and the Asia region. This strategic move underscores ESET's ongoing commitment to addressing the rapidly evolving cybersecurity demands in Singapore and across Asia, especially following accelerated digital transformation post-pandemic. Ong has over a decade of experience at ESET, consistently demonstrating her capability through successive leadership roles including Channel Manager for China, Sales Manager for APAC, and most recently, Sales Director for APAC. Her deep industry knowledge and proven leadership make her uniquely suited to elevate ESET's position in Singapore, a market identified as a pivotal growth hub in the region. 'I'm incredibly proud to take on this role,' said Ong. 'Singapore has quickly emerged as a digital innovation hub, especially after post-COVID digital transformation efforts of Singapore. The demand for advanced protection has thus grown tremendously as businesses accelerate their digital journeys. As we expand ESET's impact across Asia, I'm excited to deepen our presence in Singapore, a market that is both strategic and full of potential. I'm also equally committed to building a more inclusive future where women can thrive in cybersecurity, and helping to shape a stronger, safer digital world for everyone.' In addition to her business acumen, Ong is also a passionate champion of DEI in cybersecurity and STEM. In 2025, she helped launch the ESET Women in Cybersecurity Scholarship in Singapore and India, empowering the next generation of female cybersecurity professionals and driving change across the industry. 'Singapore is a strategic priority for ESET in the APAC region. It's paramount that we place our best people in our most important roles, and Pamela brings unmatched experience, leadership, and vision to this position,' said Parvinder Walia, President of the Asia Pacific region at ESET. Ong will be based in Singapore, reporting directly to Walia. About ESET ESET® provides cutting-edge digital security to prevent attacks before they happen. By combining the power of AI and human expertise, ESET stays ahead of known and emerging cyberthreats — securing businesses, critical infrastructure, and individuals. Whether it's endpoint, cloud, or mobile protection, our AI-native, cloud-first solutions and services remain highly effective and easy to use. ESET technology includes robust detection and response, ultra-secure encryption, and multifactor authentication. With 24/7 real-time defense and strong local support, we keep users safe and businesses running without interruption. An ever-evolving digital landscape demands a progressive approach to security: ESET is committed to world-class research and powerful threat intelligence, backed by R&D centers and a strong global partner network.
Borneo Post
10 hours ago
- Borneo Post
S'wak Archive Building milestone in preserving historical legacy despite green cert setback, says Premier
Abang Johari (third right) listens to a briefing during the State Archive Building project site visit today. – Photo by Kong Jun Liung KUCHING (Aug 6): The State Archive Building currently under construction may not fully meet the criteria for green building certification as originally intended, but it remains a significant milestone in preserving Sarawak's historical legacy, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg. During a site visit today, the Premier expressed mild disappointment over the project's deviation from its initial green building aspirations, attributing the change to modifications made during the Covid-19 pandemic. 'Initially, we planned for it to be a green building. But during Covid-19, there were some changes to the project that I wasn't made aware of. 'Even though it cannot be officially declared a green building, it still has green elements, such as the use of rainfall harvesting and temperature control features that help reduce heat,' he said. Despite the setback, Abang Johari remained upbeat, describing the archive as one of the region's most advanced archival facilities, especially in terms of humidity and temperature regulation – critical elements for document preservation. 'This project is intended to provide a centralised facility to store important historical documents and hard copies, especially those related to Sarawak's legal, political, and scientific history,' he said. Among the key records to be housed at the facility are certified copies of historical documents obtained from the United Kingdom through partnerships with institutions like the London Museum and other British authorities. These include records pertaining to the Malaysia Agreement 1963 (MA63), as well as earlier correspondence and treaties from Sarawak's colonial and pre-independence eras. Abang Johari also highlighted the inclusion of scientific collections, including works linked to renowned naturalist Alfred Russel Wallace and his assistant Ali, who collected specimens in Sarawak that contributed to Wallace's theory of evolution. 'We now have access to valuable records, such as the Sarawak Law and other historical notes, including those related to butterflies,' he said. Abang Johari underscored the importance of storing these materials under controlled conditions, noting that while many original documents remain in London, Sarawak must ensure that authenticated copies are preserved for future generations. 'We are building this archive to house these documents properly, with full control over humidity and temperature. That is what makes it special,' he said. Following the site visit, the Premier witnessed the exchange of a Memorandum of Agreement (MoA) between the Knowledge Research Group (KRG) and Universiti Teknologi Sarawak (UTS) at the nearby State Library. The event also featured the signing of an agreement between the State Library and UCTS Consultancy Services Sdn Bhd (UCSSB), along with the symbolic handover of 12 'Librarian in Every Home' training kits and the soft launch of 50 Digital Community Centres (DCCs). Also present during the visit and the event were Deputy Premier Datuk Amar Dr Sim Kui Hian, State Secretary Datuk Amar Mohamad Abu Bakar Marzuki and other officials. Abang Johari green building lead Sarawak Archive Building
The Sun
11 hours ago
- The Sun
Cathay Pacific orders 14 Boeing jets in US$8.1 billion deal
HONG KONG: Cathay Pacific has announced a US$8.1 billion deal to purchase 14 Boeing 777-9 aircraft. The airline confirmed the order in a filing to the Hong Kong stock exchange. Cathay also secured the option to buy seven additional Boeing 777-9 jets. The new aircraft are expected to be delivered by 2034. Cathay currently operates a fleet of over 230 mostly passenger planes. This marks the airline's first major order with Boeing in more than a decade. Boeing stated the deal brings its 777-9 order book to 35 aircraft. The 777-9 is described as the world's largest twin-engine airplane. Boeing highlighted the aircraft's fuel efficiency and lower emissions. Hong Kong's aviation sector faced severe challenges during the Covid-19 pandemic. Strict travel restrictions kept the city isolated until late 2022. Cathay reported a slight profit increase to US$1.27 billion in 2024. The airline confirmed flights had returned to pre-pandemic levels earlier this year. First-half 2025 attributable profit rose to HK$3.65 billion (US$4.65 million). Total revenue grew 9.5 percent to US$6.92 billion in the same period. Cathay declared an interim dividend of HK$20 cents per share. Chairman Patrick Healy praised the company's solid financial performance. He cited higher passenger volumes and lower fuel costs as key drivers. Cathay Pacific and Hong Kong Express have added 19 new destinations in 2025. The airlines now serve over 100 passenger destinations globally. Direct flights to Brussels recently resumed after a pandemic-induced hiatus. However, profit margins dipped by 0.6 percent in the first half of 2025. Healy noted short-term challenges for budget carrier HK Express. Bookings have not yet returned to normal levels, he said. Cathay's share price dropped nine percent following the earnings announcement. - AFP
