KUALA LUMPUR, Nov 2 — More than RM130 million of outstanding payment from advertising and billboards has yet to be paid to the Kuala Lumpur City Hall (DBKL), the Public Accounts Committee (PAC) revealed today.
The PAC’s report tabled on DBKL’s advertisement licences and billboards management, which was reported in the Auditor-General’s 2013 Report Series 2, found that the outstanding payment until December 2012 comprised RM128.14 million for premise signage advertisement fees and RM10.21 million for billboard licence fees.
PAC also said that the information system that was set up to store data on advertisement and billboard licences, “e-lesen”, which cost RM1.9 million, was found to be inaccurate and an RM1.6 million Billboard Management System (BMS) had input and installation problems.
“Information system for advertisement licenses and billboards management in Kuala Lumpur should be streamlined and improved to overcome the shortcomings,” PAC chairman Datuk Seri Hasan Arifin said in a statement today. He added that DBKL must ensure that the process of giving contracts to companies who handle advertising billboards in Kuala Lumpur is done publicly to ensure transparency
“Tender system for billboard and signage in Kuala Lumpur should also be streamlined,” he said.
”The enforcement for illegal advertisement and signages in Kuala Lumpur should also be strengthened and stern action must be taken to ensure more returns to City Hall,” he said, adding that the local authority should also ensure non-compliance regulations on the matter.
The PAC also recommended that DBKL’s internal audit unit (UAD) report to the local authority’s board of advisers, instead of to the mayor, to prevent a conflict of interest.
“The parliamentary PAC believes that UAD’s mechanism of reporting directly to the mayor can risk their independence and as such, needs to be reviewed,” said the PAC.
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