Highway firms to face mandatory audits under new road rules

New Straits Times

5 days ago

KUALA LUMPUR: The Works Ministry will now require all highway concessionaires to undergo external audits, as part of a series of new measures aimed at enhancing road quality and boosting accountability in upcoming contract cycles.
Works Minister Datuk Seri Alexander Nanta Linggi said the move came ahead of the expiry of several existing road maintenance concession agreements, set to lapse early next year.
He said that although current concessionaires had been performing routine maintenance, public complaints had increased, particularly with the rise of user-friendly reporting platforms such as MyJalan.
"To address this, we have decided to expand the scope of future concession agreements by mandating the appointment of an independent third-party auditor.
"This ensures we are no longer solely reliant on internal monitoring mechanisms or reports from the Public Works Department (PWD).
"The external auditors will be tasked with verifying whether maintenance works have been carried out in accordance with the required quality standards, and whether these works justify the payments made," he said.
Nanta was speaking to reporters after appearing on Berita Harian's podcast at Balai Berita earlier today.
Also present were Media Prima Bhd Group chairman Datuk Seri Dr Syed Hussian Aljunid, and Media Prima's News and Current Affairs group managing editor Jasbant Singh.
Nanta said this would mark the first time external auditing was introduced into the concessionaire system, adding that previous arrangements had limited oversight due to the absence of independent scrutiny.
"This is a significant step forward in strengthening governance. It's no longer just about ticking boxes, we want to ensure that standards are upheld, no corners are cut, and that taxpayers' money is spent wisely," he said.
He added that the ministry was preparing to call for open tenders via a request for proposal (RFP) process.
"With many of these concession contracts expiring next year, we will be opening the tender process to ensure transparency and secure the best value for public funds. There will be no direct appointments."
Nanta also disclosed that the ministry was urgently seeking additional funding to address the issue of ageing roads, estimating that RM4 million was needed to undertake proper upgrades.
"We have not yet received the full allocation, but that is the estimated sum required. Many roads are simply beyond basic maintenance due to limited funds. The condition of our road infrastructure is deteriorating," he said.
He said that with the current budget constraints, only minimal maintenance could be carried out, often falling short of national standards.
"This is why we are hoping for greater allocations under the 13th Malaysia Plan. Even if we cannot fully meet all demands, we aim to narrow the gap between needs and capacity.
"With increased funding, we can execute more comprehensive and long-lasting maintenance works," he said.
However, Nanta said that the government was not planning to hand over public road maintenance responsibilities to private highway concessionaires, as is currently the case with tolled expressways.
He said while deferred payment models might be considered under specific circumstances, they would still require government expenditure.
"In urgent situations, concessionaires may be permitted to carry out the works first and be reimbursed later. But payment will still be made eventually.