A general view of the Bukit Kayu Hitam Integrated Immigration, Customs, Quarantine and Security (ICQS) Complex in Bukit Kayu Hitam. - NSTP file pic
A general view of the Bukit Kayu Hitam Integrated Immigration, Customs, Quarantine and Security (ICQS) Complex in Bukit Kayu Hitam. - NSTP file pic

KUALA LUMPUR: The Bukit Kayu Hitam Integrated Immigration, Customs, Quarantine and Security (ICQS) Complex, that commenced operations in 2017, is still unable to effectively reduce traffic congestion caused by heavy vehicles.

The National Audit Department (NAD) also found that Phase One of the facility's construction was delayed by 24 months, which in turn, delayed the commencement of Phase Two construction.

The audit exercise also found ineffective space management as well as poor maintenance and monitoring of assets in the ICQS complex.

The findings, presented in the Auditor-General's Audit Report (LKAN) 2020 Series 1, was tabled at the Dewan Rakyat on Tuesday.

Although the concession agreement was signed on Dec 30, 2011, it took two years and four extensions for the condition precedent to be fulfilled, it found.

"This has caused a delay in setting the "effective date" to Dec 30, 2013, that consequently, affected the construction commencement date.

"The delay in transferring ownership for 15.92 acres of Kedah state land to the Federal Lands Commissioner also delayed the process to finalise the lease and sub-lease agreements," the report read.

The audit team were also unable to verify the actual number of assets and facilities within the ICQS complex since the final as-built drawings were not available.

The report also found design errors that led to the installation of electrical distribution boxes in the equipment store which could hinder and complicate urgent maintenance efforts.

"There were weaknesses in managing rental agreements and collecting rental revenues for office space and cafeteria on behalf of the government," the report said.

As such, NAD urged the Home Ministry to immediately evaluate the project implementation's effectiveness.

The ministry, it said, should also set a time frame for each process and distribute tasks more effectively to improve payment procedures for maintenance charges and asset management programmes.

This, the department said, would expedite the verification process, after taking into consideration work constraints under the new norms.

"The ministry should also finalise supplement agreements immediately to resolve issues related to concession deadlines and lease agreements," it added. The Bukit Kayu Hitam ICQS complex was built to replace the CIQ complex in Kota Perdana for vehicles entering or leaving Thailand.

The concession period was for 28 years, with the government shouldering a financial commitment worth RM1.472 billion during this period.