3 March 2025. Transparency International Malaysia (TI-Malaysia) is disappointed to note that the recently released auditor general’s report for fiscal year 2023 highlights the lack of internal controls and weak compliance to policies in several federal agencies and subsidiaries of GLICs (Government Linked Investment Companies).
Federal agencies are reported to be not complying with the accounting standards when financial reporting is done. The findings also reveal that internal controls are weak and the standard operating procedures are outdated for effective financial governance. The report also indicates that federal agencies have been over dependent on government grants for a long time. The last auditor general’s report shows that the government has given RM33.6 billion by way of grants. We would urge the government to review this policy of giving grants to federal agencies and as reported by the Auditor General, many of the subsidiaries of federal agencies are making losses without returns. We must remember these funds are tax payers’ money, said Dr Muhammad Mohan, president of TI-Malaysia.
Another glaring comment involves SWCorp under the Ministry of Housing and Local Government where there are discrepancies in the Accounts Receivables balances recorded between SWCorp and related local authorities. Such discrepancies reflect poorly on the financial governance in the respective bodies and organizations.
Question is where is the accountability for all these lapses. The government must take a hard stance to hold the relevant leadership for these discrepancies involving public money.
Moving forward federal agencies or subsidiaries of GLICs or even GLCs should utilise the e-SelfAudit System introduced by the Auditor General’s Department to take proactive actions and rectify gaps immediately. The Auditor General has given assurance that whatever information uploaded to the system will be kept confidential and is protected under the Audit Act 1957, Official Secrets Act 1972 and the Cyber Security Act 2024.
Time and again the Rakyat has asked what action is being taken based on the Auditor General’s reports and recommendations and TI Malaysia urges the Madani government to ensure that for this round we will see concrete steps and measures being taken to address the adverse findings.
Note to Editors: For clarification on any and all official statements from Transparency International – Malaysia (TI-M), kindly refer to its President, Dr Muhammad Mohan (mmohan@transparency.org.my)
