KUALA LUMPUR, Dec 2 — The Auditor-General’s Report 2018 Series 2 that was released today disclosed findings on weak financial management that needs to be improved among a few ministries, government agencies and federal government companies.
Among salient points in the findings are:
– Accumulated losses of Keretapi Tanah Melayu Berhad (KTMB) as at December 31, 2018, was at RM2.829 billion.
-The audit on the compliance of the grant management showed that the remaining of the grants amounting to RM83.67 million for 67 completed development projects and programmes has not yet been returned to the Treasury.
– Of the 47 Minister of Finance (Incorporated) companies which were evaluated based on the audited financial statements, four were financially sound, 33 stable and 10 unstable.
– Financially sound companies are Petroliam Nasional Bhd (Petronas), Prokhas Sdn Bhd, MyCreative Ventures Sdn Bhd and Syarikat Jaminan Kredit Perumahan Bhd.
– Weaknesses and inefficiencies in the organization of Kuala Lumpur Games 2017 (KL Games 2017) in terms of procurement, preparation and delays in signing contracts, and control of ticket sales as well as expenses that do not comply with financial regulations.
– Affordable homeownership scheme MyHome has been poorly managed, resulting in delays in project completion, incentive payments to dubious developers and incentives to buyers that have not yet been returned by the developers.
– The Farmer’s Incentive and Subsidy Scheme to increase the production of the country’s rice was poorly managed with subsidies were paid out to dead farmers and those with dubious IC numbers.
– Two projects, namely geothermal power plant in Sabah and University Perdana in Seri Kembangan with financial support from Dana Mudahcara involving Unit Kerjasama Awam Swasta (UKAS) amounting to RM248 million failed to materialise. Almost 90 per cent or RM191 million of the total funds had been withdrawn for the university.
– The management of Cattle Integration at Oil Palm Plantation Programme was ineffective with cattle population stood at 41,443 head in 2018 compared with the target of 300,000 head by 2020.
– The Performance of Felda New Generation Housing project was disappointing as only 1,498 houses were completed as of April 301, 2018 compared to 20,000 targeted for completion in five years from 2013.
– An overdue debt amounting to RM107.1 million with regards to tourism advertisements since three years ago was still unpaid.
– Rubber Industry Smallholders Development Authority (Risda) Berhad (PRB) recorded cash deficit and cash equivalents totalling RM27.94 million, increased by RM24.30 million (667.6 per cent) compared to deficit amounting to RM3.64 million in 2017.
– The channelling of allocation amounting to RM10.63 million to Dewan Bahasa dan Pustaka (DBP) for the supply of ‘Mushaf ál-Quran’ for the use in 2019, was made without the approval from Financial Controller.
Meanwhile, Auditor-General Datuk Nik Azman Nik Abdul Majid said in a statement that as of Aug 30 this year, the National Audit Department (NAD) had conducted the audit of financial statements of 113 federal government agencies for the financial year of 2018.
Of the total, 99 financial statements were given advice without reprimand, six with advice without reprimand with ‘emphasis of matter’(EOM) and eight were given advice with reprimand.
Meanwhile, another 35 financial statements have not yet been finalised while two agencies have yet submitted their financial statements.
Besides that, 12 performance audits were carried out at the federal government level and 21 at the state level, comprising various fields, including programmes/activities management, maintenance and revenue management.
NAD also had conducted seven management audits on government companies at the federal government level and nine at the state level.