Yangon Region Auditor General warns about possible losses on projects

Yangon Region government has invested Ks-134 billion—Ks-54 billion in Yangon Metropolitan Development Public Co., Ltd (YMD), Ks-10 billion in New Yangon Development Corporation and Ks-70 billion in the YBPC (Yangon Bus Public Company) and the Yangon Urban Public Transportation Public Co., Ltd (YUPT), according to the audit report by Yangon Region Auditor General.

According to the report, Yangon Metropolitan Development Public Co., Ltd was formed with the contribution of a 51-per-cent stake by the region government and the rest by the Myanmar Construction and Development Public Company.

The 54-billion projects to be developed by Yangon Metropolitan Development Public Co., Ltd are: Mayangone villa advanced housing project, Parami housing project, rental housing for government staff, mixed use project, Ngwepinlae dry port project, public life promoting housing (Twante project), East Dagon modern industrial zone and industrial zone-supported housing project (north).

The audit team checked the company’s account from March 8 to 31 in 2017. The company made a loss of Ks-11.460 million due to business and managerial costs even though the company had not started its operation. There was no auditing of accounts by the external auditors for 2017-2018 FY. According to the company’s account, the company earned a net profit of Ks-2,289.028 million thanks to bank interests.

The company carried out staff housing project in Dagon Seikkan Township, land measurements in Mayangone villa project and Ngwepinlae industrial land and water measurements.

The company made settlements for six buildings and 11.98-acre State-owned land with its own money and renovated the State-owned building on Sule Pagoda road. There may be ownership problem in the future.

The Region Auditor General pointed out that the region government should draft a master plan for the long-term projects as the government may face a loss of funds due to unexpected problems. For the success of these projects, officials need to carry out step-by-step checks and supervisions.

The region government formed New Yangon Development Corporation Co, Ltd with a 100-per-cent contribution and invested Ks-10 billion in it. Currently, there is no external auditing of the company. According to the list, the company has not generated income yet and spent Ks-92.611 million. The company has deposited Ks-9906.539 million— Ks-5988.574 million in Ayeyarwady bank and Ks-3906.844 million in Kanbawza Bank. The cash-in-hand is Ks-11.121 million, according to the audit report.

Source: Eleven Myanmar

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