MOE WON’T HESITATE TO TERMINATE CONTRACTORS OVER DELAYED PROJECTS – FADHLINA

KUALA LUMPUR, Oct 8 (Bernama) -- The Education Ministry (MoE) will not hesitate to take firm action against contractors who fail to complete development projects on schedule, including terminating their contracts.

Education Minister Fadhlina Sidek said the issuance of a notice of intent to terminate and the termination of contracts are among the final measures taken against consultants or contractors who fail to meet their obligations.

She said this follows the Auditor-General’s Report (LKAN) 3/2025 on the Federal Government’s 2024 Financial Statements, which found that 46 development projects under MoE in 2024 were classified as delayed or sick — accounting for 23 per cent of the 2,040 projects under the 12th Malaysia Plan’s Rolling Plan IV.

“Factors contributing to delays and sick projects include contractors’ weaknesses in managing project implementation and finances, logistical issues, and delays in obtaining approvals for utility relocation and installation.

“Other factors include unforeseen circumstances such as unpredictable weather, natural disasters, the pandemic, and rising raw material costs,” she said when winding up the debate on the LKAN 3/2025 in the Dewan Rakyat today.

In this regard, Fadhlina said MoE has implemented various management approaches, including close on-site monitoring, regular engagement sessions with state governments, local authorities, utility providers, and central agencies such as the Implementation Coordination Unit (ICU) under the Prime Minister’s Department.

“I would like to clarify that the management of sick projects involves targeted interventions, engagement sessions and discussions with stakeholders, as well as approvals related to variation orders and extensions of time,” she said.

As of Oct 1, she said 17 of the 46 delayed projects reported had been completed, while 10 remained behind schedule and the remaining 19 were at various stages of implementation — including five that require a re-tendering process.

Meanwhile, Deputy Works Minister Datuk Seri Ahmad Maslan, when winding up the LKAN debate for the Works Ministry (KKR), said that as of Sept 8, a total of 66 physical construction projects under the Public Works Department (JKR) had been identified as sick projects.

He said the main factors contributing to the delays include poor contractor management, financial constraints, land acquisition issues, delays in utility relocation and changes in project scope by client ministries.

“As such, several measures have been or will be taken against problematic contractors, including the issuance of warning letters, imposition of Liquidated Ascertained Damages (LAD), and contract termination.

“Termination will be enforced if the project is deemed sick and no longer viable. Contractors whose contracts are terminated will be suspended for two years and barred from participating in any government contracts,” he said.

-- BERNAMA