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Free Malaysia Today
21-07-2025
- Business
- Free Malaysia Today
Ensure accountability in deals flagged by A-G, says TI-M
TI-M president Raymon Ram said the Auditor-General's Report must not be 'an annual ritual of regret' but followed by structural reforms. (Facebook pic) PETALING JAYA : Transparency International Malaysia (TI-M) has urged the government to ensure accountability after the Auditor-General's Report 2025 flagged issues involving several projects worth hundreds of millions of ringgit. TI-M president Raymon Ram said the report unveiled irregularities and systemic weaknesses in financial management and procurement oversight, necessitating structural reforms. Raymon said such issues were not new and had been repeatedly flagged by the audit department, but they had continued because of outdated procedures, weak oversight and a culture of impunity. 'Where is the accountability for all these lapses? 'The government must take a firm stance and hold the leadership accountable for discrepancies involving public funds. 'These recurring findings highlight institutional weaknesses that demand more than administrative corrections; they require structural reform,' he said in a statement. Raymon said the revelations further erode the confidence of Malaysians in public institutions. The A-G's report flagged serious issues on how more than RM460 million of government funds was spent on land deals, university tenders, and defence contracts between 2020 and 2024, naming Felcra Bhd, Universiti Kebangsaan Malaysia (UKM), and the army. He urged the Malaysian Anti-Corruption Commission and the police to initiate investigations into these issues to look into the possibility of fraud, abuse of power or negligence. He also called on the relevant government ministries, departments and agencies to disclose the remedial actions they would take within 30 days to show responsibility and ensure public confidence. The government must make it mandatory for independent third-party experts to be roped in to monitor high-risk procurements under 'integrity pacts', involving civil society and professionals from the private sector, he said. Raymon also urged Putrajaya to table a comprehensive public procurement law that outlines transparency standards, penalties for non-compliance and clear procurement dispute mechanisms. 'The A-G's report must not be an annual ritual of regret. 'It must serve as a catalyst for reform, one that rebuilds institutional integrity, ensures justice for wrongdoing and protects the interests of the rakyat,' he said.
Free Malaysia Today
21-07-2025
- Business
- Free Malaysia Today
A-G finds weak oversight in RM460mil worth of govt deals
Auditor-general Wan Suraya Wan Mohd Radzi named Felcra Bhd, Universiti Kebangsaan Malaysia, and the army as being involved in questionable spending and weak oversight between 2020 and 2024. PETALING JAYA : A new government audit has found serious problems in how over RM460 million of public money was spent on land deals, university tenders, and defence contracts. The 2025 Auditor-General's Report Series 2, which was tabled in the Dewan Rakyat today, named Felcra Bhd, Universiti Kebangsaan Malaysia (UKM), and the army as being involved in questionable spending and weak oversight between 2020 and 2024. In a statement, auditor-general Wan Suraya Wan Mohd Radzi said Felcra was flagged for leasing four oil palm estates worth RM241.76 million without proper board approval or expert review, which she said showed poor governance in how the land deals were handled. Wan Suraya said three UKM tenders worth RM58.45 million were given to companies that were not supported by evaluation committees. The audit also highlighted the army's failure to collect RM162.75 million in late fees for the delayed delivery of armoured vehicles and to impose RM1.42 million in penalties for delayed maintenance. The report also identified weaknesses in the implementation, monitoring, and enforcement of the subsidised cooking oil programme under the domestic trade and cost of living ministry, particularly in failing to properly target beneficiaries and the inefficient quota system. Wan Suraya also noted that the selected pre-qualification procurement method introduced by the finance ministry was found to have potential for manipulation, where ineligible companies were still shortlisted for final selection. 'The audit recommends that the selected pre-qualification procurement method should not be continued. Open tender procurement would be more appropriate to ensure accountability and transparency in the procurement process,' she said. A total of five audits involving seven ministries were conducted, covering programmes, activities, and projects worth RM48.873 billion. A total of 22 audit recommendations were submitted to the ministries, departments, and companies involved. Wan Suraya also said that follow-up audits by the national audit department from 2024 to June 2025 helped the government recover RM157.73 million, including through penalty collections, taxes, and fines.
New Straits Times
21-07-2025
- Business
- New Straits Times
Auditor General flags poor governance in Felcra's RM241mil land deals
KUALA LUMPUR: The Auditor General's Report 2/2025 has raised concerns over major governance failures in Felcra Bhd's RM241.76 million purchase of four oil palm estates carried out between 2022 and 2024. Auditor General Datuk Wan Suraya Wan Mohd Radzi said serious irregularities and weaknesses in governance were highlighted in the report such as the procurement process, price valuation, yield performance, and compliance with board resolutions and agreements. "The acquisition of the Telupid Estate was approved despite objections from board members and a viability report that rated the land as less feasible due to its terrain and soil conditions. "Additionally, procurement decisions were rushed and not properly documented." Among the most glaring issues was Felcra's purchase of the Telupid Estate in Sabah for RM62.29 million. The land was deemed less viable for oil palm cultivation due to steep slopes and unsuitable soil series. Despite an earlier board decision to defer the purchase and appoint an external consultant, the acquisition was approved 22 days later without the consultant being engaged. Two directors had raised concerns over the lack of independent analysis and requested for a delay, but these were ultimately disregarded. A similar pattern occurred in the RM92.44 million lease acquisition of the Aring Estate in Kelantan. Board members had abstained from voting, citing governance concerns and the absence of mitigation plans should the investment underperform. Nonetheless, Felcra proceeded to sign the lease agreement just seven days after board approval. "The Board of Directors proceeded with the acquisition despite some board members abstaining from the decision. "There was no evidence that appropriate action was taken regarding the issues raised by the board members before the acquisition decision was finalised. "The first payment was made on Sept 27, 2023, 12 days after the agreement was signed." Two other estates purchased were Dabong and Sg. Rawit 2, valued at RM66.15 million and RM20.88 million respectively. The report also found that projected palm oil yields across all estates were overly optimistic. While Felcra had set post-recovery targets as high as 18 metric tonnes per hectare for some estates, viability assessments revealed that significant portions of land, especially at the Telupid site, were unsuitable for planting due to steep terrain exceeding 250 metres in elevation, breaching agricultural guidelines. Three of the estates were located in Gua Musang, Kelantan, and were acquired via lease agreements. The fourth was purchased outright in Sabah. Felcra had set a strategic goal to acquire up to 30,000 hectares of plantation land within five years to help cover its RM210 million annual operating expenditure. However, Wan Suraya warned that the lack of proper governance and risk assessment in these transactions could undermine that ambition. "The governance of high-value procurement must be strengthened to prevent wastage and ensure value for money," she said. The Auditor General recommended that Felcra improve its internal controls, ensure all board decisions are properly deliberated and recorded, and adhere strictly to procurement protocols in future land acquisitions.
The Star
21-07-2025
- Business
- The Star
Auditor-General's report: Felcra's acquisition of Gua Musang oil palm estates hasty
PETALING JAYA: The acquisition process of three oil palm estates in Gua Musang, Kelantan was rushed, with agreements signed just seven to 12 days after getting approval from Felcra Bhd's board of directors, according to the Auditor-General's Report 2/2025. These include the Dabong estate and Sungai Rawit 2 estate (approved in Board Meeting No. 207/2022), as well as the Aring estate (approved in Special Board Meeting No. 217/2023). "The acquisition of all three estates relied only on feasibility reports prepared by a Felcra Bhd subsidiary. "Financially, the investments were questionable due to long payback periods of 11 to 22 years,even after factoring in recovery work. "On top of that, extra costs including lease payments to Kelantan state agencies were not fully considered. "Aside from that, palm oil yields from the estates in 2022 to 2024 were low and had not met production targets. "Felcra is expected to spend RM5.98mil on recovery works to improve yields at these estates," read the report that was released on Monday (July 21). It also highlighted that land selected for investment should not have unresolved legal or financial issues. In this case, the leasehold land owned by the Kelantan Islamic Religious and Malay Customs Council (Maik) came with existing debt tied to a company, posing financial risk if the company fails to pay. As of April 2025, the lease registration for Aring estate had not been completed due to pending approval from the Kelantan state exco, delaying the settlement of the remaining RM30.97mil payment. The report also found that Felcra also failed to comply with contract terms requiring verification of assets and machinery during vacant possession for Dabong and Aring Estates. "No asset registry was prepared, and audit visits found discrepancies between the number of assets stated and those actually on site," it said. In response, Felcra said that a recovery cost of RM3.74mil was needed during the acquisition of the Aring Estate to ensure smooth production, especially for tasks such as weed control and frond pruning. "Recovery work is still ongoing at the estate, including the construction of pest control drains, and is expected to be completed by May 2025," said Felcra. On the verification of assets, Felcra said "the estate was purchased on a "lock, stock, and barrel" basis, meaning all assets on the estate were included in the purchase." "Felcra took immediate action by verifying and documenting the receipt of assets and machinery through the estate manager on April 7 2025," said Felcra. The AG report recommended Felcra improve its governance processes to ensure that all decisions related to plantation acquisitions are made collectively, align with previous resolutions and follow the company's constitution, rules and regulations. "Any changes to earlier board decisions must be clearly documented, confirmed through a new resolution, and properly recorded by the company secretary," read the report.
The Star
15-07-2025
- Business
- The Star
New padi varieties tackle weedy rice
A more resistant crop: Mohamad (left) inspecting the new Clearfield rice varieties at the Felcra Bhd Seed Centre, Seberang Perak. He is accompanied by Robert Upton, BASF head of business management South-East Asia. — Bernama PASIR SALAK: The Agriculture and Food Security Ministry, through the Malaysian Agricultural Research and Development Institute (Mardi), has introduced two new padi varieties to address the weedy rice issue in the country. Minister Datuk Seri Mohamad Sabu said the development of the new MR CL3 and MR CL4 varieties was the result of a strategic collaboration between Mardi and BASF (Malaysia) Sdn Bhd over the past 20 years. 'MR CL3 and MR CL4 mature earlier, at 99 days, and have a yield potential of over seven tonnes per hectare,' he said during the launch of the new Clearfield padi varieties at the Felcra Bhd Seed Centre here. Also present were ministry secretary-general Datuk Seri Isham Ishak; Perak Rural Development, Plantation, Agriculture and Food Industry Committee chairman Datuk Mohd Zolkafly Harun; Mardi Governing Board chairman Dr Azman Ismail; and Mardi director-general Datuk Dr Mohamad Zabawi Abdul Ghani. Mohamad said both varieties are also resistant to leaf and neck blast diseases and can be utilised under current KPKM initiatives, such as the five padi planting seasons in two years programme and the Large-Scale SMART Padi Field (SMART SBB) programme. As for the commercialisation of the new varieties, he said it would be carried out through the Clearfield Production System, which includes padi varieties, imidazolinone herbicide (Trek) and stewardship guidelines, to tackle the weedy rice issue. Mohamad added that the MR CL3 and MR CL4 varieties were specifically bred to be resistant to imidazolinone herbicides, Bernama reported. Weedy rice, also known as 'padi angin' in Malaysia, is a problematic weed that can significantly reduce crop yields. Earlier, Mohamad also officiated the launch of the new Integrated Agricultural Development Area Complex in Seberang Perak.
