THE Auditor-General’s Report 3/2025 has revealed significant weaknesses in the management of government concession vehicles, with more than 6,000 units delivered late and an estimated RM54.51 million in penalties left unclaimed by the Ministry of Finance (MOF).
According to the report on the Federal Government’s Financial Statements 2024, tabled in the Dewan Rakyat today, the Concession Agreement (CA2) between the MOF and the concessionaire—effective from 31 July 2022 to 30 July 2037—requires that all vehicles be delivered within 60 working days from the order date.
“An audit analysis using the concessionaire’s vehicle management system data found that, as of 31 December 2024, a total of 6,028 concession vehicles were delivered late by between one and 508 days beyond the stipulated 60 working days,” the report stated.
“Audit checks also found that as at the time of auditing, there was no record of any penalty claims made against the concessionaire.”
In addition to delays, the report highlighted that the government incurred an estimated RM28.79 million in excess costs due to the continued use of 5,323 concession vehicles whose leases had expired between 2021 and 2024.
Audit estimates suggest that had the vehicles been replaced on schedule, the government would have paid RM94.64 million instead of the RM123.43 million actually spent.
The National Audit Department has since recommended that the MOF, as the contract administrator, take action to recover the estimated RM54.51 million in penalties and expedite the replacement of expired leased vehicles.
In its official responses dated 25 July and 18 August 2025, the MOF confirmed the establishment of a Penalty Committee and a Penalty Assessment Working Committee to examine the appropriate claims to be submitted.
The Penalty Committee is chaired by the Deputy Secretary-General (Investment) of the Treasury and includes representatives from various MOF departments and the National Accounting Department.
“MOF held a coordination meeting with all ministries on 18 August 2025 to communicate the audit findings and the follow-up actions required,” the report added.
Regarding the continued use of expired vehicles, the MOF explained that it was necessary to ensure uninterrupted public service delivery, taking into account supply issues faced by the concessionaire in sourcing replacement vehicles from manufacturers. - October 6, 2025
