Audit Uncovers Major Issues in RM48.78b Worth of Government Projects Across Seven Ministries

KUALA LUMPUR, Malaysia’s Auditor General has flagged serious irregularities and weaknesses in government projects and programmes worth RM48.78 billion involving seven ministries.

In the latest Auditor General’s Report, Datuk Seri Wan Suraya Wan Mohd Radzi outlined 22 recommendations aimed at improving oversight and accountability across the ministries, departments, and government-linked companies involved.

She noted that follow-up audits carried out between 2024 and June 2025 have led to the recovery of RM157.73 million through penalties, taxes, fines, liquidated damages, and arrears on rent and leases.

The National Audit Department’s powers were recently expanded under amendments to the Audit Act 1957, allowing it to monitor corrective actions taken based on past audit findings.

Among the issues identified were:

  • Felcra Bhd’s RM241.76 million lease acquisition of oil palm plantations (2022–2024), which raised concerns over governance.

  • Universiti Kebangsaan Malaysia’s tender processes involving RM58.45 million, which showed procurement irregularities.

  • The Malaysian Army’s contract administration and procurement of armoured vehicles between 2020 and 2023, marked by oversight weaknesses.

  • The Ministry of Domestic Trade and Cost of Living’s subsidised cooking oil programme, which suffered from poor targeting and quota management.

  • The Finance Ministry’s pre-qualification procurement method (2023–2024), which was found to be susceptible to abuse, as unqualified companies were shortlisted despite lacking proper credentials.

The report underscores the urgent need for stronger internal controls and better enforcement to prevent mismanagement of public funds.

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