15 rooms at $14.3m Terangganu hotel not fit for guests

15 rooms at $14.3m Terangganu hotel not fit for guests

PETALING JAYA, Malaysia - Fifteen of the 180 rooms of a newly built hotel in Terengganu cannot be used because they do not have "proper furniture and equipment".

The three-star Grand Puteri Hotel, under the Prime Minister's Department, was built at a cost of RM37.3mil (S$ 14.5 million).

The Auditor-General's report Series II released yesterday said part of the hotel design was not suitable and the construction quality was "not satisfactory" despite the cost.

The hotel was built on land owned by the Terengganu Islamic Religious and Malay Customs Council.

The construction was monitored by the Terengganu Public Works Department and completed on Jan 17 last year before it was handed over to the Department of Awqaf, Zakat and Haj (Jawhar), under the Prime Minister's Department on April 8.

The report said Jawhar should obtain funds to procure furniture and equipment for the 15 rooms on the 7th floor.

While the overall management was "in order, efficient and prudent", there were many unnecessary delays in the construction phase, it said.

The approval of the Variation Order or VO, which is part of the documentation process, was also not dated, reflecting weaknesses in the internal controls, the report added.

In its response, Jawhar said the Terengganu PWD secretariat had "forgotten" to state the approval date on the document, but had since rectified the mistake.

The VO is issued to make any urgent or critical changes that require immediate action.

The VO affects the physical attributes and cost of a project as there will be increases, reductions or substitutions of work or modifications which do not comply with the contract.

The report recommended that the PWD improve its internal controls of its VO issuance process to make it more "proper and transparent".

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