Latest news with #AuditorGeneral'sReport
New Straits Times
23-07-2025
- Business
- New Straits Times
Mindef claims RM162.7mil from armoured vehicle supplier
KUALA LUMPUR: The Defence Ministry issued a claim notice for RM162.75 million in penalties against its armoured vehicle supplier in January this year, the Dewan Rakyat heard today. Its Deputy Minister, Adly Zahari, said the notice for the late penalty claim was issued due to delays in the delivery of 68 armoured vehicles between 2020 and 2023. He said this in response to the Auditor General's Report 2/2025, which revealed that the ministry had failed to collect RM162.75 million in penalties imposed on its supplier for the armoured vehicle contracts. Adly also said the company subsequently submitted a response and appealed for the late penalty to be waived, citing exceptional circumstances caused by the Covid-19 pandemic and the Russia-Ukraine war. "The appeal was presented on May 6, 2025, and the company was imposed a penalty totalling RM162 million, along with a performance bond amounting to RM53 million. "The remaining penalty sum will be recovered through offset arrangements in current contracts or collected separately from the company," he said during the ministry's winding-up session on the report. On Monday, the AG's Report revealed weaknesses in the Malaysian Army's management of armoured vehicle contracts, including the failure to collect RM162.75 million in penalties imposed on its supplier. According to the report, the penalties stemmed from supply delays involving 70 Gempita units, delivered between August 2020 and December 2022. The assets were delivered up to 1,048 days past the agreed schedule. Despite the delays, the ministry had made full payment of RM7.5 billion for the contract by June 2023. Commenting further, Adly said the ministry acknowledges weaknesses in enforcing contract terms and is currently in the process of developing a contract monitoring system to assist officers in overseeing contracts. "This is to ensure that even if we grant an extension of time, we do not delay the imposition of late penalties until the project is completed," he said.
New Straits Times
23-07-2025
- Politics
- New Straits Times
News@9: Today's top headlines - July 23, 2025 [WATCH]
Here are today's biggest stories. Act now Prime Minister Datuk Seri Anwar Ibrahim ordered ministers to act decisively on recurring issues flagged in the Auditor General's Report. Tun Dr Mahathir Mohamad challenged the government to prove any wrongdoing over Pulau Batu Puteh in court. Bad gamble Police break up multi-state lottery scam syndicate linked to 15 cases, with losses nearing RM200,000. Must be observed Employers are required to observe the new public holiday on Sept 15, said Human Resources Minister Steven Sim.
Malaysiakini
21-07-2025
- Business
- Malaysiakini
Auditor report tells ministries to discontinue selected procurement method
The implementation of the Selected Pre-Qualified Open Tender Procurement at the Energy Transition and Water Transformation Ministry, the Works Ministry and the Rural and Regional Development Ministry has not achieved the objective of expediting the procurement process. According to the Auditor General's Report (AG Report) 2/2025 tabled in the Dewan Rakyat today for the Works Ministry, the implementing agency audited was the Sabah Public Works Department.
Barnama
21-07-2025
- Business
- Barnama
Selected Pre-Q Procurement In Three Ministries Should Not Continue
KUALA LUMPUR, July 21 (Bernama) -- The implementation of the Selected Pre-Qualified Open Tender Procurement (Selected Pre-Q Procurement) at the Ministry of Energy Transition and Water Transformation (PETRA), the Ministry of Works (KKR) and the Ministry of Rural and Regional Development (KKDW) has not achieved the objective of expediting the procurement process. According to the Auditor General's Report (AG Report) 2/2025 tabled in the Dewan Rakyat today for the KKR, the implementing agency audited was the Sabah Public Works Department (JKR). Based on the audit conducted, the implementation of the Selected Pre-Q Procurement in the three ministries should not be continued, among other things due to the existence of room for manipulation and lack of transparency in the selection of companies, where only certain companies were approved to participate in the tender. 'In addition, market competitiveness is reduced because the ministries or departments involved do not have a database related to the list of reputable and high-performing companies that have previously received contracts from the ministries or departments. 'The Pre-Q Selected Procurement Method does not set a maximum period for the second-stage invitation process and the overall procurement period but only sets a minimum period, causing the procurement process to take a long time, between 152 and 553 days,' according to the report. In this regard, the audit is of the view that the Pre-Q Selected Procurement method should not be continued and the open tender procurement method is more suitable to be implemented to ensure accountability and transparency in the procurement process. However, if the government chooses to continue with Pre-Q Selected Procurement, it is still relevant for large-scale or high-impact projects that require certain technical and financial capabilities from companies participating in the tender, including conducting initial screening on companies. To ensure the objectives of the Procurement Selected Pre-Q are achieved, the audit recommends that the projects offered under the procurement method consist of specific projects that are targeted and require immediate implementation and do not involve specific expertise for their implementation. In addition, the report also recommends clearer and more transparent terms and criteria based on the needs according to the type of project can help ministries or departments screen faster at the initial stage to avoid wasting time and cost in evaluating participation from ineligible companies.
New Straits Times
21-07-2025
- Business
- New Straits Times
Audit reveals foreign firms get biggest share of cooking oil quotas
KUALA LUMPUR: The Auditor General's Report 2/2025 has revealed that subsidiaries of foreign companies registered in Singapore and Japan received the highest quotas for subsidised cooking oil refineries compared to local companies. Among the companies highlighted in the report is a wholly owned subsidiary of a firm established and based in Singapore, which owns eight refineries across Malaysia. "This company received the highest monthly supply quota amounting to 29,231 tonnes, accounting for 50.2 per cent of the domestic subsidised cooking oil supply," the report stated. Another company, also registered in Singapore, owns two refineries in Malaysia and supplies 8,921 tonnes per month, representing 15.3 per cent of the subsidised supply. "A Japanese company, through its subsidiary, was allocated a monthly quota of 1,291 tonnes, which constitutes 2.2 per cent of the domestic subsidised cooking oil supply. "Two government-linked companies, which are also major local players, were granted a combined quota of 6,154 tonnes per month or 10.6 per cent of the total subsidised supply. "Additionally, eight other local companies received a total quota of 12,674 tonnes per month, making up 21.8 per cent of the supply," the report said. Meanwhile, the Domestic Trade and Cost of Living Ministry, in its response to the audit findings, said that currently, there is no policy stipulating that the supply of cooking oil must come exclusively from locally owned refineries. According to the existing standard operating procedure (SOP) for the Cooking Oil Price Stabilisation Scheme (COSS), packaging companies are allowed to choose up to two refineries to source their cooking oil. "In the application process to change refinery suppliers, packaging companies consider several factors when selecting a refinery for supply. "These include proximity of the refinery to the packaging company to reduce transportation costs; the quality of service and oil supply offered by the refinery; and the refinery's ability to consistently meet order demands," it said. The ministry added that it is currently working on improving the management of the COSS programme, which includes reviewing the priority given to local refineries in the supply of subsidised cooking oil.
