Latest news with #AuditorGeneral
New Straits Times
7 hours ago
- Business
- New Straits Times
NST Leader: Familiar story in AG's Report as billions lost without action
HERE we go again. "Serious irregularities" and "weaknesses" in ministries and government entities are back as national bad news. Our lawmakers must be outraged to hear such misuse of the public purse on the first day of the Dewan Rakyat session. Whatever the year, the Auditor General's Report on government entities bleeding red ink remains very much the same story. There have been years of lessons, yet none learnt. Neither has there been the will to hold errant officers to account. For a nation that is in debt to the tune of RM1.28 trillion and trying hard to pay it off, that is heartbreaking. Why no one has the will to put an end to such systemic failures in the public service has become an annual question. Let's be clear. We are not counting pennies here. We are talking of hundreds of millions of ringgit. Of the five audits conducted over the period of the 11th and 12th Malaysia Plans, the auditors found serious irregularities in three. The first is Felcra Bhd's governance failure in four plantations involving a total of RM241.76 million from 2022 to 2024. Don't fault us for asking: Aren't the top management and board members up to the task? The second, an audit on Universiti Kebangsaan Malaysia's tender process, though involving a smaller sum — RM58.45 million — disclosed a mind-bending outcome. There, the Tender Procurement Committee selected companies that were not recommended by the Technical Evaluation, Financial Evaluation and Pre-Tender Committees. One overrides three? There can't be a clearer example of a violation of tender procedures. The culprits must not be spared. The third audit relates to army vehicle contract mismanagement. There, RM162.75 million in penalties for late delivery of Gempita vehicle remains uncollected and RM1.42 million in penalties for service delays has yet to be enforced. If that wasn't enough, RM107.54 million in service procurement was split into smaller packages, circumventing regulations. The other two audits findings were related to subsidised cooking oil programme flaws under the Domestic Trade and Cost of Living Ministry and weaknesses in the government's pre-qualification procurement introduced by the Finance Ministry, bringing the total value of the five audits to RM48.873 billion. Transparency International Malaysia (TI-M) attributes the systemic breakdowns to three causes: outdated procedures, weak financial oversight and a culture of impunity. In our book, though, the culture of impunity is the root cause. Year after year leakages, wastages, irregularities and weaknesses have been highlighted by the Auditor General's Report, yet we hear little about the guilty being held accountable. Quiet slap on the wrists won't do. The government being transparent doesn't mean merely making the audit reports public, it must also be transparent about accountability. TI-M is right in calling on 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. The Auditor General's Reports mustn't just be treated as something to be read and filed away. It must be a call to action. The Malaysian Anti-Corruption Commission must spring into action, if it hasn't already. Accountability is the best medicine against the cancer of impunity.
New Straits Times
a day ago
- 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.
Globe and Mail
a day ago
- Business
- Globe and Mail
Auditor-General plans probe of international student program
The federal Auditor-General's office is planning an audit of the international student program, which has been mired in controversy over a rapid influx of foreign students in recent years. A spokesperson for the office confirmed to The Globe and Mail that there will be an audit, and a report is expected to be tabled in Parliament next year. The government of former prime minister Justin Trudeau was heavily criticized for the rapid increase in immigration after the onset of the COVID-19 pandemic, driven in part by a sharp rise in the number of international students in the country. There were more than one million international students in 2023, which was about three times the number of permits a decade earlier. The increase in immigration fuelled record population growth that strained the housing market – pushing up both home prices and rents – and put pressure on other services such as health care. Opinion: International students are being set up to fail The Bank of Canada weighed in on the issue in late 2023, warning that high immigration was putting pressure on inflation via increased housing demand. The federal government eventually responded to the criticism with a series of changes, including a two-year cap that aimed to cut the number of study permits it issued by about a third in the first year. While the surge in international students prompted a number of concerns about the program, it's unclear what exactly the Auditor- General will be examining in the coming audit. Claire Beaudry, a spokesperson for the AG's office, said in an e-mail that 'the audit is in its planning phase at this time, so providing information on scope and timelines is premature.' The increase in the number of international students in Canada raised concerns about the type of institutions that were accepting them and the quality of education students were receiving. Colleges, including private career colleges, were particularly scrutinized for rapidly expanding their foreign-student admissions. Postsecondary institutions benefited financially from admitting more international students, because their tuition rates are much higher than the ones charged to domestic students. Auditor-General to review new $526-million border duties system Many international students were willing to pay those exorbitant fees to come to Canada, frequently with the hope of securing permanent-residency status after their graduation. The federal government was blamed for loosening rules that critics say contributed to this influx, including lifting the cap on the number of hours international students could work to help businesses find workers in a tight labour market. Mikal Skuterud, an economics professor at the University of Waterloo who was a vocal critic of the previous Liberal government's immigration policies, said there are many elements of the international student program the Auditor-General could look at. That includes the cap on study permits and pathways to permanent residency. Mr. Skuterud said the federal government responded with a blunt tool – caps on permits – to the influx of students coming to the country, but that it's unclear how Ottawa plans to proceed with the program. 'In that sense, it would be extremely valuable to have the AG look at this and provide some input,' Mr. Skuterud said in an interview. Data for Immigration, Refugees and Citizenship Canada show that there were just under one million international students in the country last year. But the number of new permits issued fell to about 516,000, down from about 681,000 in 2023. The federal government says it plans to issue 437,000 study permits this year.
Malay Mail
a day ago
- Health
- Malay Mail
Hospital gave tender to company that failed to deliver cancer treatment machines on time, delaying patients' treatments by months
KUALA LUMPUR, July 21 — A delay in the delivery of critical cancer treatment equipment by a firm has affected patient health care at the Hospital Canselor Tuanku Muhriz (HCTM), revealed the Auditor-General's Report. In an audit report released today, the National Audit Department found that the firm, identified as 0074062-D, failed to provide a linear accelerator (Linac) radiotherapy system as well as a CT-Simulator and Contrast Injector to HCTM on time. The Linac and other supporting equipment were initially scheduled for delivery on September 18, 2024. However, by the time the audit report was concluded on January 17 this year, the Linac machine was yet to be delivered to the said hospital. The report stated that the delay has jeopardised health treatment for at least 20 patients, which was reportedly postponed for up to eight weeks. According to the audit report, the firm failed to supply the equipment on time because the new Linac unit did not meet the technical integration requirements with HCTM's existing system, known as ARIA. 'This technical incompatibility meant that no testing and commissioning work could proceed, further stalling installation and operation,' the report stated. The company then in June last year, asked to postpone the completion of its tender to Feb 12, 2025 due the technical incompatibility, which was approved by HCTM. However, the firm asked for another deferment in December to an unspecified date, which HCTM rejected. Despite the issue, 0074062-D was awarded the contract by the hospital's tender procurement committee. During the tender process, although company 0074062-D met the technical and financial evaluation thresholds, it was not recommended for appointment by the pre-tender committee, technical assessment committee and financial assessment committee. The report stated that the technical assessment committee specifically highlighted that the equipment proposed by the company did not comply with integration requirements for the hospital's existing ARIA system. Despite these concerns, the tender procurement committee proceeded to award the contract to company 0074062-D, overriding the collective recommendations of the evaluation committees. HCTM stated that the tender procurement committee selected company 0074062-D because it fulfilled 90.36 per cent of the technical assessment criteria, submitted the second-lowest bid at RM22 million, and offered the lowest maintenance cost at RM960,000 per year. This was compared to RM1.09 million per year quoted by the lowest bidder in the tender process. However, the National Audit Department found that the explanation unsatisfactory as the report showed the cost saving decision was made despite one company - 0050470-K - submitting a bid for just RM370,000 more than the winning bid, but with the highest score in the technical assessment at 98.05 percent. Apart from the cancer treatment equipment procurement, the Audit Department also raised concerns over two other tenders approved by HCTM — one for catering services and another for lift upgrades. In the catering tender, a RM25.6 million contract was awarded to a company that lacked experience and failed to meet key technical requirements, including having halal certification. Despite not being recommended by the financial assessment committee, the company was chosen due to having sufficient capital. Notably, none of the bidders fully met both technical and financial criteria. Meanwhile, a RM10.8 million contract for lift upgrades was given to company 0726241-U, which had a 'sick project' record — a clear breach of tendering guidelines for major works. Although the hospital claimed that further reviews showed some of the firm's questionable projects were completed on time, the Audit Department maintained that the company should have been disqualified from the start.
Malay Mail
2 days ago
- Business
- Malay Mail
A-G report flags RM7.8b Malaysian Army armoured vehicle deals for delays, full payments despite failures
KUALA LUMPUR, July 21 — The Auditor General's (AG) Report 2/2025 has revealed significant weaknesses in the procurement management and administration of the Malaysian Army's (TDM) armoured vehicle contracts, which could potentially expose the government to the risk of loss. According to AG Report 2/2025 tabled in the Dewan Rakyat today, there were contracts worth RM7.8 billion involving major armoured vehicles during the audit period from 2020 to 2023, namely GEMPITA, PENDEKAR, ADNAN, LIPAN BARA and MIFV. The contracts were supposed to support TDM's readiness to become a modern land force capable of defending Malaysia's sovereignty, but delays and administrative weaknesses have undermined the achievement of that objective. 'Among the key findings was a significant delay in the supply of 68 GEMPITA vehicles by a local company, which resulted in a fine of RM162.75 million which was only claimed on Jan 15, 2025, 746 days (two years and 15 days) after the contract expired on Dec 31, 2022.' 'The audit also found that the government had made the full payment of RM7.52 billion despite the company failing to comply with the agreed delivery schedule, while the contract performance bond of RM53.93 million which expired on Dec 31, 2024 was also found to be insufficient to cover the amount of the fine,' the report said. The review for the same period also found delays in maintenance, repair and spare parts supply services for GEMPITA, ADNAN and PENDEKAR vehicles, with an estimated fine of RM1.42 million still not imposed as of end 2023, despite the service being 227 days late. 'The report also reprimanded the implementation of procurement in small batches by several Responsibility Centres (PTJ) which violated financial regulations, involving direct purchases and quotations totalling RM107.54 million for the period 2020 to 2023, while procurement exceeding RM500,000 per year should have been through open tenders,' the report said. In addition, the absence of major contracts for several types of vehicles such as MIFV and LIPAN BARA during the audit period forced PTJs to implement ad hoc procurement, thus increasing governance risks. The Ministry of Defence explained that the delays were due to factors beyond their control including the implementation of the Movement Control Order (MCO), but the audit stressed that measures such as issuing fine notices should have been implemented while the contract was still in force to protect the government's interests. The audit also recommended that contracts be established within a reasonable period and any procurement during the absence of contracts should not be implemented in small batches at PTJ level, but rather submitted to the Ministry of Finance through the controlling officers for special approval. — Bernama
