Auditor-General flags shady deals in Felcra, UKM, and Army armoured vehicle procurements
Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi said there were governance weaknesses in the implementation of leasing procurements for four oil palm plantations by FELCRA Berhad, involving acquisitions worth RM241.76 million from 2022 to 2024.
She said there were serious irregularities and weaknesses in the tender procurement process and procurement governance at Universiti Kebangsaan Malaysia (UKM), involving three tenders worth RM58.45 million.
'(There were) weaknesses in contract administration and procurement management for the army's armoured vehicles between 2020 and 2023, including RM162.75 million in penalties that have yet to be collected and RM1.42 million in penalties not imposed on the company for delays in maintenance services,' she said in a statement.
In addition, she said the procurement of maintenance services, repairs, and supply of spare parts for armoured vehicles amounting to RM107.54 million was found to have been carried out through contract splitting.
The audit also found weaknesses in the implementation, monitoring, and enforcement of the subsidised cooking oil programme by the Ministry of Domestic Trade and Cost of Living (KPDN), particularly the absence of targeted allocation for eligible and needy groups.
Wan Suraya said KPDN's efforts to reduce the subsidised cooking oil supply quota since 2016 should be continued, as this measure could have a positive impact on curbing leakages through more targeted distribution, in line with audit recommendations.
She added that the Selective Pre-Q Procurement Method introduced by the Ministry of Finance allowed room for manipulation and lacked transparency, as some companies that either failed to meet the evaluation criteria at the first stage or were not invited were still selected and evaluated at the second stage.
'The audit recommends that the method should not be continued and that the open tender method is more appropriate to ensure accountability and transparency in the procurement process,' she said.
A total of five audits involving seven ministries were reported, covering audited programmes, activities and projects worth RM48.873 billion. The Auditor-General submitted 22 audit recommendations to the ministries, departments and government-owned companies.
Wan Suraya also stated that audits by the National Audit Department from 2024 to June 2025 had helped the government recover RM157.73 million, including through the penalty claims, outstanding rent and collection of duties and taxes.
The public can access the report from 10 am today via http://lkan.audit.gov.my and https://agdashboard.audit.gov.my. — Bernama
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