THE 2025 Auditor-General’s Report (Series 2), tabled in the Dewan Rakyat today, has identified significant irregularities and governance failings in procurement and contract management within FELCRA Berhad, Universiti Kebangsaan Malaysia (UKM), and the Ministry of Defence.
Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi revealed that FELCRA Berhad’s leasing procurement for four oil palm plantations involved acquisitions worth RM241.76 million between 2022 and 2024, and was marred by weak governance.
She also cited procurement issues at UKM involving three tenders valued at RM58.45 million.
“There were serious irregularities and weaknesses in the tender procurement process and procurement governance at Universiti Kebangsaan Malaysia (UKM),” she said in a statement issued with the report.
The audit further uncovered shortcomings in contract administration and procurement management related to the Armed Forces’ armoured vehicle programmes between 2020 and 2023. This included RM162.75 million in penalties yet to be recovered, and RM1.42 million in penalties not imposed on contractors for delays in maintenance services.
Procurement of maintenance services, repairs and supply of spare parts for the vehicles—amounting to RM107.54 million—was also found to have been carried out through contract splitting.
The Ministry of Domestic Trade and Cost of Living (KPDN) was also found to have weaknesses in implementing, monitoring and enforcing the subsidised cooking oil programme, particularly the absence of targeted allocations for eligible recipients.
“KPDN’s efforts to reduce the subsidised cooking oil supply quota since 2016 should be continued, as this measure could have a positive impact on curbing leakages through more targeted distribution, in line with audit recommendations,” said Wan Suraya.
She also criticised the Ministry of Finance’s use of the Selective Pre-Qualification (Pre-Q) Procurement Method, describing it as lacking in transparency and open to manipulation.
“The audit recommends that the method should not be continued and that the open tender method is more appropriate to ensure accountability and transparency in the procurement process,” she added.
The report covered five audits across seven ministries, encompassing programmes, activities and projects valued at RM48.873 billion. It issued 22 recommendations to various ministries, departments and government-linked companies.
Wan Suraya stated that audits conducted by the National Audit Department from 2024 to June 2025 had led to the recovery of RM157.73 million through penalty claims, outstanding rent collections, and the collection of duties and taxes.
The public may access the full report from 10am today via [http://lkan.audit.gov.my](http://lkan.audit.gov.my) and [https://agdashboard.audit.gov.my](https://agdashboard.audit.gov.my). - July 21, 2025
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