Latest news with #RM157.73
New Straits Times
22-07-2025
- Business
- New Straits Times
TI-M: AG's report exposes systemic failures, urges urgent reform
Transparency International Malaysia (TI-M) has urged the government to enact structural reforms in response to the Auditor General's Report 2/2025, warning that repeated governance failures revealed are emblematic of systemic breakdowns. "Outdated procedures, weak financial oversight and a culture of impunity have allowed such practices to continue year after year," said the watchdog in a statement. TI-M welcomed the expanded audit scope and 2024 amendments to the Audit Act 1957, which empowers the auditor general to monitor the implementation of recommendations via the Auditor General's Dashboard. It also praised enforcement that helped recover RM157.73 million between 2024 and mid-2025. "However, laws and dashboards alone are insufficient. TI-M stresses that transparency must be matched with enforcement, and that every agency implicated must be held accountable without delay." TI-M said these recurring findings highlighted institutional weaknesses that demanded structural reform, not just administrative corrections. It highlighted examples from the AG's report, such as Felcra Bhd's governance failures in lease procurements worth RM241.76 million and Universiti Kebangsaan Malaysia's RM58.45 million in irregular tenders awarded without proper committee recommendation. The group also highlighted the army's failure to collect RM162.75 million in penalties for delayed military vehicles deliveries and improperly fragmented procurement contracts, ongoing weaknesses in cooking oil subsidy management by the Domestic Trade and Cost of Living Ministry and manipulation risks in the Finance Ministry's Pre-Qualification procurement method. It said there must be immediate action on four fronts—enforcement, public disclosure, independent monitoring and legislative reform. It demanded swift enforcement by the Malaysian Anti-Corruption Commission, police and Attorney-General's Chambers on all cases involving procurement fraud, abuse of power or negligence. It urged all implicated ministries and agencies to publicly disclose remedial actions within 30 days, covering recovery of funds, disciplinary measures and procedural reforms, to restore public trust. TI-M also pushed for mandatory implementation of Independent Expert Monitors in all Integrity Pacts for high-risk procurements, calling them a credible safeguard against collusion and corruption in major contracts. Finally, it called for the tabling of a comprehensive Public Procurement Act that would provide a unified, legally enforceable framework with transparency standards, legal sanctions, whistleblower protections and independent oversight. Meanwhile, Malaysia Integrity and Governance Society president Datuk Seri Dr Akhbar Satar said Malaysia must urgently enforce a stringent and transparent procurement framework to curb fraud, corruption and waste. He said this in response to findings in the Auditor General's Report. "Transparency is the antidote to the disease of corruption. Large amounts of public funds are channelled to the market through public procurement. It continues to be vulnerable to fraud and corruption." Akhbar said contracts in organisations should be awarded to only qualified, reliable and competent contractors through a system with strong oversight and continuous monitoring. "Procurement must follow a tight legal framework to ensure that standards are met and there is quality in the selection process." Common procurement lapses, he said, included conflict of interest, misuse of power, undue influence in the needs assessment, embezzlement, fraud in bid evaluation and tender manipulation, and bribery of public officials. Quoting former auditor-general Tan Sri Ambrin Buang, Akhbar said the estimate that up to 30 per cent of Malaysia's public project value was lost owing to mismanagement and corruption aligned with the World Bank's finding that 20 per cent to 30 per cent of public contract budgets were wasted. He said lack of monitoring and failure to comply with policies were key drivers of corruption and spending leakages. The most common malpractice, he added, was taking "commissions" from bidders by unethical officers. He urged heads of department to actively monitor projects and suppliers to prevent monopolies and abuses. "They themselves must be whiter than white," he said.
Barnama
26-06-2025
- Business
- Barnama
Improvements In Public Sector Auditing Among Main Agenda At WGFA Meeting
GEORGE TOWN, June 26 (Bernama) -- Continuous improvement in public sector auditing is among the main agenda to be discussed at the ongoing inaugural meeting of the Working Group on Follow-up Audit (WGFA) here. In a statement, the National Audit Department said the two-day meeting, chaired by Malaysia, marks the first gathering of the newly established WGFA under the International Organisation of Supreme Audit Institutions (INTOSAI). Other key agenda items include the finalisation of the Terms of Reference for the WGFA, which will serve as a guiding framework for the working group's direction and operations, aimed at enhancing accountability and promoting continuous improvement in public sector auditing. bootstrap slideshow Participants will also share best practices in audit follow-up procedures, with Malaysia presenting its Auditor-General Dashboard, which tracks all issues raised in the Auditor-General's Reports and ensures active monitoring until they are fully resolved. 'As of 2024, a total of RM157.73 million in public funds have been recovered as a result of audit follow-ups conducted at the federal and state levels,' the statement noted. Looking ahead, the statement said the WGFA 2025-2028 Work Plan includes long-term initiatives to develop Best Practice Guidelines for audit follow-ups, in collaboration with INTOSAI member countries. The group will also explore the need for specialised training and capacity-building programmes to enhance the quality and impact of follow-up audits in each member country. Malaysia's Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi presided over the meeting, which gathered 71 participants from 43 Supreme Audit Institutions (SAIs) around the world. In her opening remarks as Chair of the INTOSAI WGFA, Wan Suraya emphasised that Malaysia's leadership of the group reflects the global commitment to a dynamic, structured, and high-impact collaborative audit framework.
New Straits Times
26-06-2025
- Business
- New Straits Times
Malaysia recovers RM158mil in public funds via follow-up audits
KUALA LUMPUR: Malaysia has recovered RM157.73 million in public funds through follow-up audits since last year, thanks to tighter monitoring and improved enforcement by the National Audit Department. The achievement was highlighted in a statement issued today in conjunction with the inaugural meeting of the Working Group on Follow-up Audit (WGFA), a newly established body under the International Organisation of Supreme Audit Institutions (Intosai). Malaysia is chairing the group, which aims to help countries strengthen their follow-up mechanisms to ensure audit findings lead to concrete action and resolution. The two-day meeting, which began today in Penang, brought together 71 auditors from 43 countries, including officials from Bulgaria, Oman, South Africa, Thailand and Turkiye. The group includes heads of audit agencies and senior auditors. Malaysia's Auditor General (AG) and Intosai WGFA chair Datuk Seri Wan Suraya Wan Mohd Radzi said the group's creation shows the global commitment to better accountability in public spending. A key highlight from Malaysia was the introduction of the AG's Dashboard, a digital system that tracks every issue raised in the AG's report until it is fully resolved. The meeting will also finalise the group's official framework and plan future projects, including a guideline that shares best practices for follow-up audits globally. Delegates also discussed the need for more training and support to help countries improve their audit follow-up work, which is seen as a key part of public sector reform. The event was supported by the Penang state government, along with other local agencies, to promote tourism and economic growth in the state.
