Payments for printing, mailing police summonses not in line with contract, audit report shows

The Auditor-General's Report 2021 Series 2 has found that the payments for printing services and the posting of police summons notices were not in accordance with the contract.

According to the report released today, the police made payments before the service was carried out, involving payments of RM17.76 million and fines for late posted notices amounting to RM1.82 million that were not imposed.

"The audit review found that service company 227963-P issued a delivery order (delivery note) to confirm the service even though the actual service was only performed after 19 to 382 days from the date of payment.

"Further review of the audit found that the payment for the service of printing and posting 4.8 million police postal summons notices amounting to RM17.76 million was settled before the service was implemented," the report said.

The report said that according to the agreement, after printing and putting the police notice in an envelope as per the government's order, the contractor must post the notice within 14 days of the date the official order is made.

"When the police notice is posted late, the government is entitled to receive the police notice and demand compensation from the contractor.

"The delay in posting the notice of summons is between one and 34 days. Based on the audit's calculations, a total of RM1.82 million in fines can be imposed for late notices posted by the service company 227963-P," the report added.

The report also disclosed that service company 227963-P had appointed a subcontractor without approval with a contract value of RM32.58 million.

In order to ensure compliance with the financial regulations and conditions in the service agreement clause of printing and posting summon notices, the police were recommended to ensure that payments are made according to the stipulations of the agreement based on the actual number of summons notices printed and posted by the service company.

"It must also ensure that the monitoring of the period of completion of the printing service and the posting of summons notices is done more effectively by taking immediate action against any delays and enforcing existing agreement clauses as well as improving the terms of the agreement to protect the government's interests," it said.