Syarikat Perumahan Negara Bhd records high administrative costs

The Star 3/10/2005
Stories by IZATUN SHARI, A. LETCHUMANAN, TEH ENG HOCK and NASA MARIA ENTABAN

THE national housing corporation, Syarikat Perumahan Negara Bhd (SPNB) had spent 25% more on administrative matters last year than it did in 2003.

The Auditor-General also found that that SPNB had not implemented or completed some housing projects entrusted to it according to schedule.

The Auditor-General's Report 2004 said the corporation spent RM337.12mil for administration last year, compared with RM264.52mil in 2003.

This was due, among other things, to increased expenditures in salaries, mileage claims, office rental and stationeries as well as Family Day events and meeting expenses for senior officials, it said.

The report noted that SPNB paid out RM12mil to the Government as dividends between 2002 and last year.

It also gave a two-month salary incentive for 2002 and 2003 to its staff and a request for a three-month salary incentive had since been forwarded to the Finance Ministry.

The Attorney-General was of the view that SPNB should manage its administrative expenditure more prudently to avoid low cash flow that could affect loan repayment to the Government.

On SPNB’s housing ventures, an audit inspection found that between 2003 and last year only 10 of the restoration projects for abandoned housing schemes were completed although the corporation was expected to finish 36 projects.

The unfinished projects were either at the contractor selection stage or had yet to begin construction. The delay was because SPNB was slow to obtain approvals from previous developers and consent from house-buyers, the report said.

Regarding 1,502 units of affordable homes for the masses that were scheduled between 2002 and last year, only 394 units were completed and handed over to applicants.

An audit visit to a few sites showed that some restoration projects had also not followed set specifications.

The audit analysis on SPNB’s balance sheet and income statement for the financial year 2002 to last year found that it only spent between 30% and 60% of its allocation.

The shortfall was because SPNB could not carry out projects according to schedule due to land acquisition problem and delay in obtaining approval from the local authority.

According to SPNB, the increase in staff was inevitable and led to the increase in costs.

It said it was working with the National Housing Department and other relevant parties to ensure that its housing projects are carried out accordingly.