RM273mil down the drain with failed uCustoms system

by | Sep 28, 2021 | Local News, News | 0 comments

PETALING JAYA: After eight years, an ambitious RM397.43 million computerised Customs information system scheduled for completion in 2015 has yet to get going, although RM272.99 million has been paid out to suppliers and project managers.

The “uCustoms” system was one of the most glaring failures among government projects listed in the latest Auditor-General’s Report for 2019 released today.

“Overall, it can be concluded that the development of the uCustoms system failed to be completed in seven years and two months (86 months) after five extensions were granted,” said the report.

Auditor-General Nik Azman Nik Abdul Majid said earlier today that the Customs department was responsible for the biggest wastage in the report due to the uCustoms system.

Speaking to the media at a joint press conference with Public Accounts Committee chairman Wong Kah Woh at Parliament House, Nik Azman described the uCustoms system as a waste of money because the project was not completed but the government still had to pay for it.

The uCustoms system was touted as being able to improve the efficiency of Customs services with the introduction of a single gateway for fast, secure and customer-friendly electronic system.

Among the uCustoms system’s weaknesses identified by the report include only three of the 70 major modules being successfully completed and operational, the lack of feasibility studies before the system was implemented, and only 1,056 out of 3,876 deliverables (27.2%) received by the Customs department.

The report also said there were weaknesses in the payment process, whereby 13 payment vouchers amounting to RM64.89 million could not be verified due to incomplete documents.

A high turnover rate among senior officers of the uCustoms supplier team and selection of suppliers which did not meet standards and six contracts signed between 58 days and 204 days late were also of concern to the auditors.

Reference: https://www.freemalaysiatoday.com/category/nation/2021/09/28/rm273mil-down-the-drain-with-failed-ucustoms-system/