KUALA LUMPUR: Earlier today, the Auditor General's (AG) 2/2024 released a report tabled at the Dewan Rakyat highlighting issues across ministries, departments, agencies and government-linked companies at the federal level.
The report covered projects from the Ninth Malaysia Plan to the 12th Malaysia Plan, identifying weaknesses stemming from various factors. Here are highlights from the report:
1. 64 RECOMMENDATIONS
The Auditor General's Report 2/2024 proposed 64 audit recommendations for implementation by ministries, departments, agencies and government-linked companies at the federal level.
Auditor General Datuk Wan Suraya Wan Mohd Radzi said all controlling officers, heads of departments and chief executive officers were informed about the matters reported in the report for verification purposes.
She said a closing meeting was held to discuss the audit findings and to obtain explanations and feedback on the issues raised.
2. DELAY IN RIVER OF LIFE PROJECT
The River of Life (RoL) project, which aims to revitalise the areas near Sungai Gombak and Sungai Klang in the city centre, will not be completed this year.
According to the Auditor-General's Report 2/2024, 12 projects are still in the pre-implementation stage and eight projects are in the implementation stage as of July last year.
Minister in the Prime Minister's Department (Federal Territories) Dr Zaliha Mustafa said she will explain issues plaguing RoL during her winding-up speech in Parliament on June 9.
3. 28 OUT OF 87 BROADBAND SEGMENTS WORTH RM53.6M UNUSED
Twenty-eight out of 87 broadband segments, valued at RM53.6 million, have remained unused since the completion of the Broadband Infrastructure and Connectivity Empowerment Programme between 2013 and 2017.
These segments are part of the Broadband to General Population (BBGP) project in Sabah and Peninsular Malaysia.
The report said some of the infrastructure in these segments have been abandoned, with disconnected cable lines and damaged equipment.
4. 37 ECER INDUSTRIAL PLOTS UNOCCUPIED BY INVESTORS
Thirty-seven of the 43 industrial plots under the East Coast Economic Region (ECER) remain unoccupied by investors.
The Auditor-General's Report said these unoccupied plots are in the Tok Bali Integrated Fisheries Park Project, Malaysia-China Kuantan Industrial Park Project, and the Kertih Biopolymer Park Project Phase 1 to 3.
5. MARA INC GROUP RECORDS LOSSES OF RM286 MILLION
The Auditor-General's report revealed that issues in Mara Incorporated Sdn Bhd (Mara Inc) financial accounts.
It disclosed that the Mara Inc group incurred a total loss of RM286.3 million for the year.
6. QUESTIONS ARISE IN HRD CORP TRAINING PROGRAMME
The Auditor General's report said the Gerak Insan Gemilang (GIG) training scheme, which is under Human Resources Development Corporation, was attended by 3,726 participants.
However, some of these people attended the scheme up to 16 times, and this cost the HRD Corp RM51.69 million.
7. NAVY SPARE PARTS WORTH RM384 MILLION UNUTILISED
Some RM384.5 million in spare parts procured for the Royal Malaysian Navy (RMN) were unutilised with some no longer being usable.
RMN's Western Armada depot contains 1.62 million spare parts worth RM381.69 million, while the Eastern Armada depot holds 6,040 spare parts worth RM2.8 million.
8. DISCREPENCIES IN SABAH, SARAWAK RAW WATER PROJECT
There were discrepencies in the allocation balances for the Rural Water Supply Project (BALB) in Sarawak and Sabah in 2017 and 2020, as reported in the Budget Programme and Performance Report by the Ministry of Rural and Regional Development.
The audit revealed that the allocation balance for the Sarawak Reticulation BALB Project in 2017 was RM1.24 million, with RM4.98 million allocated for the Sabah BALB Project in 2020.
9. MISUSE OF NATIONAL COUNCIL OF PROFESSORS' FUNDS
Almost RM374,000 in National Council of Professors' (MPN) funds were misused to benefit two companies in which two trustees have a stake, the Auditor-General's Report revealed.
For the period between 2019 to 2023, the Auditor-General found that two board of trustees members failed to declare share ownership in two companies in line with the Companies Act.
10. DELAY IN WATER TREATMENT PLANT PROJECTS
Four out of 27 projects to upgrade and build water treatment plants nationwide throughout the 11th Malaysia Plan period were delayed beyond their scheduled completion dates.
The four projects experienced delays between 324 and 1,076 days, including two in Sabah, one in Johor and one in Kedah. The four projects cost RM926.79 million.
When commening on the issues of national water management, Deputy Prime Minister Datuk Seri Fadillah Yusof said a team will review all issues in the AG report, including those related to the Department of Irrigation and Drainage.
11. COST INCREASE IN RTS LINK PROJECT
The estimated cost of the Rapid Transit System Link (RTS Link) infrastructure project increased by 29.9 per cent or RM1.2 billion to RM5.24 billion as of Dec 31, 2023, compared to the original estimated cost of RM4.03 billion in January 2018.
This increase was partly due to the expansion of the depot work scope from light to heavy maintenance, new contracts for the Traffic Diversion Scheme, and the construction of the Customs, Immigration, and Quarantine (CIQ) Complex.