KOTA KINABALU – The compliance audit initiated by the National Audit Department on all Sabah ministries, departments and agencies last year found several flaws in the financial management of certain state departments.
The Auditor-General’s Report (AG’s Report) released by AG Datuk Nik Azman Nik Abdul Majid yesterday has revealed that RM135,250 worth of revenue meant for the Sabah State Water Department was not collected from 2013 to 2019
The report also notes that canteen rent worth RM63,550 from the department was not accounted for as state revenue from 2006 to 2019.
Meanwhile, the Sabah Public Works Department has not paid RM1.41 million in building rent from 2004 to 2017 to the appointed building management company, the building rental deposit totalling RM229,898 received by the company was not handed over to the department.
Also, the Sabah state railway department did not collect building and land rental amounting to RM57,290 that was due to it for 2019.
Nik Azman said the compliance audit is a new approach that includes auditing of financial statements and management, in line with the International Standards of Supreme Audit Institutions (ISSAI) 4000 dan 4100.
“This audit focuses on key audit areas and financial management control based on risk profiling. The compliance audit will identify the elements of waste, squander, corruption and leakage of public funds,” he said.
Meanwhile, the AG’s Report on departmental management activities and the state companies’ management, third series of 2018, revealed that the Sabah department of drainage and irrigation did not meet its maintenance objective because there are still repeated flash floods each year.
It said this was caused by rubbish piles in the drainage systems, which was due to very low allocation approved for the maintenance, despite the department having requested for more.
“Other than that, lateness in appointing new contractors upon the expiry of previous contracts has caused maintenance to not be done as scheduled. This could have a significant impact on the outcome of the irrigation and drainage systems in towns, which would cause floods in those areas,” it said.
The report also said the administration practise of SEDCO Travel & Tours Sdn Bhd under the Sabah Economic Development Corporation is unsatisfactory.
Its management activity’s output does not meet the target of income, revenue and key performance index (KPI) that were set. Its financial status is also not stable after losing money (before tax) for three years in a row – in 2016, 2017 and 2018 – when it lost RM1.17 million, RM112,258 and RM137,075, respectively.
POIC Sabah Sdn. Bhd under the state Ministry of Trade and Industry also failed to reach the targeted development for POIC Lahad Datu which only reached 38.8%.
The selling of land slots in POIC Lahad Datu also reached 72.2%, while rental of land slots only reached 23.5%.
“POIC’s financial position is unstable as it suffered loss for three years straight,” the report said.
The report also said the plan to create a palm oil downstream processing industrial area and an industrial cluster was not realised as its third phase did not see the development of a palm-oil-related industry as envisaged. – The Vibes, December 19, 2020.
