A-G’s report identifies over RM158 mil in losses, wastage, irregular payments

JOHOR BARU – The Auditor-General’s Report 2021 identified RM158.08 million worth of losses, wastage, and irregular payments involving public funds. 

The compliance audit over RM1.127 billion worth of public funds involved three ministries and four federal agencies. 

According to the report published today, the Auditor-General’s Office identified RM116.95 million losses or missing funds, more than half of which concerned the Customs Department and the collection of duties for imported vehicles at duty-free islands – Langkawi and Labuan. 

Custom duties amounting to RM72.32 million were understated due to “residential and vehicle ownership requirements” not being complied with and inaccurate excise duties calculations. 

Meanwhile, the report also highlighted discrepancies involving the Agriculture and Food Industries Ministry, particularly with regard to Padi Price Subsidy Scheme (SSHP) payments under the concession agreement for managing the padi and rice industry. 

The ministry has yet to receive RM37 million for the social obligation fund, while RM0.73 million SSHP payments were made to deceased paddy farmers, and RM3.99 million worth of machinery was unused, damaged, and did not comply with concession agreements. 

Audits on police also saw RM19.58 million in wastage and irregular payments.

The report said that RM17.76 million involved payments that did not comply with contracts, while RM1.82 million concerned fines that were not imposed.

The auditor-general also identified that SR Express (M) Sdn Bhd – a service contractor – appointed a subcontractor without approval with the agreement valued at RM32.58 million. 

Additionally, the report also pointed towards RM4 million in wastage of public funds and RM7.31 million in irregular payments involving the Communications and Multimedia Ministry and Digital Content Grant payments. 

Digital Content Grant payments from the year 2017 to 2019 amounting to RM4 million were made despite failure to complete projects, while RM3.25 million were disbursed although previous projects were yet to be completed. 

Additionally, the report also identified that monies from the grant were given to companies related to members of the board of directors or committee members involving RM4 million, while RM60,000 worth of improper payments concerning the sale of broadcasting rights without approval. – The Vibes, February 16, 2023