The Special Internal Audit Report on MAPS stated in 4.2.6 that Retention sum for the progress claims was waived in progress claim no. 23 onwards, and the amount retained has been released prior to the completion of the project.
From progress claim 1 – 20, ATP deducted 10% of the progress claim from SDGM as retention sum, which is consistent with the industry practice.
However, ATP made a decision on 29 Dec 2015 to reduce the % of retention sum from 10% to 5% of progress claim, up to a maximum of 5% of the contract value. This has been reflected in progress claim 21 and 22.
On 7 Apr 2016, ATP made the decision to waive the retention sum and release the entire sum of retention monies totaling RM15.33M to SDGM, upon the receipt of Corporate Guarantee 5% of the contract value from SDGM.
Now that SDGM has gone into receivership, the 5% corporate guarantee that ATP received is good for nothing.
Zambry must explain why did he allow ATP to make such scandalous decision to forgo the retention money when ATP has obtained legal opinion that they are entitled to retain retention sum in the turnkey contract. The decision to release the retention money is absolutely baffling.
How can Zambry agree to release the entire retention sum to SDGM prior to the completion of the project? It is clear that this decision made was not in the best interest of ATP. In fact, this decision which Zambry allowed only served the interest of SDGM.
Why is Zambry serving the interest of SDGM when he has direct control over ATP? Shouldn’t he be looking after the interest of ATP?
Media Statement by Chairman of the Audit Committee Perak Corporation Berhad and Keranji State Assemblyman Chong Zhemin on 24 March 2019.
ATP – Animation Theme Park Sdn Bhd
SDGM – Sanderson Design Group (Malaysia) Sdn Bhd