When ATP and SDGM signed the RM306M Turnkey Contract, Chair Swing Ride(known as family swing ride in supplementary contract no. 1), Cartoon factory and the development of Adventurers IP were part of the turnkey contract.
However, these 3 rides and attractions had been omitted from the turnkey contract and carry forward to the supplementary contract. This constitute a breach of contract on the original RM306M Turnkey Contract and ATP could have sue SDGM for damages.
However, Zambry made an incomprehensible decision to bow to SDGM demands and allow ATP to sign off a RM22M supplementary contract to carry forward the Chair Swing Ride, Cartoon Factory and the development of Adventurers IP from the Turnkey Contract to the supplementary Contract No. 1.
Why did Zambry agree to this decision to inflate the whole project cost of MAPS? Is he serving the interest of ATP or SDGM?
The Special Internal Audit report also stated in section 4.3.3 that the Chair Swing Ride, Cartoon Factory and the development of Adventurers IP could not be quantified and traced directly from the contract sum breakdown of the turnkey contract and matched accordingly with the contract sum breakdown of the supplementary contract no. 1
The special internal audit report also stated that the inability to straight away identify and match the related cost as per turnkey contract to the supplementary contract no. 1 has caused the legitimacy and accuracy of the price breakdown in the supplementary contract no. 1 not being able to ascertain. The report stated that this has raised doubt whether SDGM was charging ATP the right amount.
The report also noted that the cost of the 3 rides and attractions that has been committed for the supplementary contract no.1 were more than the original cost as per the Turnkey Contract.
The Chair Swing Ride which cost RM992k in the Turnkey Contract has increased in total cost to RM4.123M with the supplementary contract no. 1, Cartoon factory which cost RM4.128M increased to RM6.633M and the development of Adventurers IP from RM1.837M to RM2.948M
I urge Zambry to immediately explain this incomprehensible and unconventional decision to allow 3 rides and attractions to be carried forward from the Turnkey Contract to Supplementary Contract No. 1 causing MAPS project cost to be inflated.
Media Statement by Chairman of the Audit Committee Perak Corporation Berhad and Keranji State Assemblyman Chong Zhemin on 6 April 2019.