Category: Auditor-General Report

— Nawawi Mohamad
The Malaysian Insider
Oct 25, 2011

OCT 25 — The headlines in the news are crying foul over the extravagance, abusive and utter lunacy in the way the government and its machineries have spent our money. Nine ministries and government departments over spent the allocations, 50 per cent failures under poverty eradication projects, procedures were breached, the Bukit Jalil stadium is not save and too many others that need not be mentioned here.

In short the vast preponderance of funds for the ministries, departments and government agencies could become a “bottomless pit” for the taxpayers. Please be aware that in the 2010 budget allocation 73 per cent was for operating and 27 per cent for development expenditures; a skewed proportion.

That is why there was a delay in announcing the audit report done by the PAC. The whole debacle reflects how irresponsible the government is. This is bad governance.

Unfortunately there is no indication that the government is trying to improve its performance. The government still holds back and distort the process of development and will continue to disproportionate the poorer and weaker of society. The government will continue to withhold critical budgetary operational information to the public. Continue reading “The bottomless pit”

— Ali Kadir
The Malaysian Insider
Oct 25, 2011

OCT 25 — Some of us sing the Negaraku with gusto, we fly the flag and proclaim ourselves patriots. But do we really care about Malaysia, care enough that we will do more than just sit and shake our heads when something so wrong and unjust and corrupt happens before our eyes.

I am referring to the Auditor-General’s report for last year and I am not talking about the sanitised version in the mainstream media. Does it bother us that:

* the RM142 million RazakSAT malfunctioned barely a year after being commissioned, and was woefully inaccurate. Why was it commissioned? Who approved it? Who made a bundle from this project? We will never get answers to this crucial questions and we will never learn? Because the accountability of our politicians and decision makers is zero.

* the Tourism Ministry overpaid RM270 million in advertisements because it chose not to go for open tenders. Guess what, the ministry breached Treasury regulations in doing so. Ng Yen Yen’s ministry also paid RM1,950 for a pamphlet rack. Continue reading “Do we care?”

By Tony Pua

Every year Malaysians are treated to a series of “tall tales” in the Auditor-General Report, which are unfortunately true stories. This year, despite an “upgrade” in ratings for the overall financial management by Government departments and agencies, the tales of financial abuse and degrees of incompetence is no less fantastic than previous years.

In previous years, we had screw drivers worth RM32 was purchased at RM224 or a car jack worth RM50 purchased at RM5,700 making a complete mockery of the Government’s procurement process. Last year, Kolej Kemahiran Tinggi Mara in Balik Pulau purchased a whole list of products for its computer laboratory at prices well above that of the market, including 2 Acer computer laptops at RM84,640 when it is worth only be a tenth of the price paid.

This year is no different with the Marine Parks Department taking the leading role by purchasing binoculars worth not more than RM1,940 was purchased at RM56,350, more than 28 times the market price. It was of course not the only offending item – the Department purchased RM192,694 worth of products including common items such as laptops, printers, LCD TV, DVD Player when their total value should not exceed RM20,193.
Continue reading “Call for a Financial Accountability Commission answerable to the Parliament with full powers to take punitive actions”

by Hazlan Zakaria
Malaysiakini
6:45PM Oct 24, 2011

The fate of a failed government-linked company and its RM250 million government soft loan that was made debate fodder by the Opposition in Parliament recently is in the sight of the Public Accounts Committee (PAC).

“This matter has been made much of in Parliament. The PAC will look into National Feedlot Corporation, which is under the Ministry of Agriculture and Agro-based Industries,” its chairperson Azmi Khalid told reporters after chairing the financial oversight body’s maiden meeting for this session at Parliament House today.

The opposition raised red flags on the corporation, not just because of its non-performance but more so because of National Feedlot’s link to the son and husband of a federal minister. Continue reading “Parliamentary body to probe feedlot project”

Hafiz Yatim | 2:18PM Oct 24, 2011
Malaysiakini

Instead of fully utilising a RM54 million allocation to provide training courses for the hardcore poor, Majlis Amanah Rakyat (Mara) spent money on related items – at 100 percent more than the market price.

The 2010 Auditor-General’s Report, tabled in the Dewan Rakyat today, states that the funds were provided under the second Economic Stimulus programme to help the poor boost their income

Some of the purchases highlighted in the report:

•An oven at RM1,200 compared to the market price of RM419, for baking and pastry-making courses in Kelantan

•Folding beds at RM500, against the market price of RM100

•Two-burner gas cookers at RM200 each, rather than RM59.90

•Hair clippers supplied at RM250 each, instead of RM79

•A blender at RM140 instead of RM60 Continue reading “Mara ticked off for high-priced purchases”

Nigel Aw | 5:45PM Oct 24, 2011
Malaysiakini

The Malaysian Marine Parks Department (JTLM) spent a whopping RM56,350 for a pair of night vision Marine binoculars, 29 times more than its market value of RM1,940, the 2010 Auditor-General’s report reveals.

The department paid the same amount for another pair of night vision Bushnell binoculars, or 1,893 percent more than its actual price of RM2,827.

It similarly overpaid RM38,470 and RM13,918 for a Colour Marine radar set costing RM8,255 and a LCD TV with DVD player costing RM16,100 and RM2,182 respectively.

Other items include:

•Laptop and colour printer at RM11,845, instead of RM3,428 (246 percent more)

•Hand-held portable VHF Transceiver at RM4,324, instead of RM1,561 (177 percent more) Continue reading “Price of binoculars zooms 29 times”

By Yow Hong Chieh
The Malaysian Insider
Oct 24, 2011

KUALA LUMPUR, Oct 24 — The Public Accounts Committee (PAC) will probe seven ministries and agencies for weak financial management.

They are the Health Ministry; Science, Technology and Innovation Ministry; Energy, Green Technology and Water Ministry; Transport Ministry; Internal Revenue Board; Customs Department and the Malaysia Stadiums Corporation.

“These are the seven… recommended in the Auditor-General’s Report but we will decide next week if we will increase the number,” PAC chairman Datuk Seri Azmi Khalid told reporters after the Auditor-General briefed the committee.

Also present was Auditor-General Tan Sri Ambrin Buang and other PAC members. Continue reading “PAC to haul up seven ministries, agencies for weak finances”

By Debra Chong
The Malaysian Insider
Oct 24, 2011

KUALA LUMPUR, Oct 24 — Putrajaya risked public safety when it took four years to approve funds to repair the damaged roof at the Bukit Jalil National Stadium, the Auditor-General said in his report released today.

The report highlighted that the Merdeka Stadium Corporation (MSC), a federal statutory body responsible for the management of all national sports complexes, had applied to repair damage to the Bukit Jalil Stadium a total of four times since 2006.

The government finally approved RM30 million to repair the damaged stadium in December last year, the report added.

“The Auditor is of the view the delay in completing the roof repairs at Bukit Jalil National Stadium… was because the government did not approve the allocation applied for since 2006.

“This could jeopardise the comfort of users who would be exposed to the rain and endanger their safety if the roof collapsed especially for international events,” the report said. Continue reading “Auditor-General: Putrajaya risked lives in delaying Bukit Jalil stadium roof repair”

By Shazwan Mustafa Kamal
The Malaysian Insider
Oct 24, 2011

KUALA LUMPUR, Oct 24 — Indah Water Konsortium (IWK) and Syarikat Prasarana Negara Bhd were among six government-linked companies (GLCs) that paid employees up to two months’ bonus despite suffering an accumulated RM354.91 million in losses in 2009, the Auditor-General’s report said today.

The report also said that sovereign wealth fund Khazanah Nasional was among ten government companies that have not paid Putrajaya any dividends despite making net profits in 2009.

IWK, which suffered losses amounting to RM33.35 million in 2009, made between one-and-a-half to two month’s bonus payments to its staff during the year.

Prasarana, which lost RM188.03 million in the same year, gave out one-and-a-half months’ bonus to its staff. Continue reading “Bonus bonanza at GLCs despite losses, says Auditor-General report”

By Debra Chong
The Malaysian Insider
Oct 24, 2011

KUALA LUMPUR, Oct 24 — The National Sports Institute (NSI) paid RM3.94 million for 18 horses that were not qualified to race in the 2008 World Endurance Championship (WEC), the Auditor-General said in his report today.

The report noted NSI had failed to get the Treasury’s approval before buying the horses, as required for direct negotiation purchases.

It further noted NSI had failed to adhere to international rules set by the Federation Equestre Internationale (FEI), the world governing body for equestrian competitions, which saw the 18 out of 23 horses bought in October 2007 being disqualified from the WEC 2008. Continue reading “Sports institute ponied up for wrong horses, says Auditor-General”

by Debra Chong
The Malaysian Insider
Oct 24, 2011

KUALA LUMPUR, Oct 24 — The Tourism Ministry overpaid nearly RM270 million for advertisements when it chose to use direct bookings instead of open tenders, the Auditor-General reported today.

The report noted that in doing so, the ministry had also breached the Treasury’s regulations as laid down in a circular in 2007.

The ministry also spent a whopping RM1.95 million to buy 1,000 racks — RM1,950 per rack — to hold its tourism pamphlets for the Visit Malaysia Year 2007 campaign, the report said, again pointing out the move was done without the treasury’s approval.

Auditor-General Tan Sri Ambrin Buang said the ministry must hold an open tender “so the price offered will be more competitive, transparent and provide better value for money”.

“In addition, this method would have avoided power abuse as well as created internal controls and good governance in booking advertisement space,” he said in the report. Continue reading “Auditor-General: Tourism Ministry overpaid RM270m for ads”

By G. Manimaran
The Malaysian Insider
Bahasa Malaysia Editor
Oct 24, 2011

KUALA LUMPUR, Oct 24 — Land acquisition costs for the Senai-Desaru Expressway project exceeded estimates by nearly 103 per cent or RM375.6 million more than originally stated, according to the 2010 Auditor-General’s report.

Following this development, the Auditor-General is suggesting for the government to adopt a new approach by “capping” expenditure for future projects.

Land acquisition for Senai-Desaru Expressway Bhd (SDEB) was initially estimated to cost RM365 million but the final cost weighed in at RM740.6 million.

The expressway is part of the Iskandar Malaysia development, connecting Senai in west Johor to Desaru in east Johor. Continue reading “Johor highway land cost doubled from original, says audit report”

By Shazwan Mustafa Kamal
The Malaysian Insider
Oct 24, 2011

KUALA LUMPUR, Oct 24 — Only two out of 300 computer laboratories for Sabah schools have been constructed since the government began its RM160.73 million project in April 2008, the Auditor-General’s report said today.

Sabah recorded the highest number of computer lab construction projects as well as costs, followed by Sarawak (RM49 million), Johor (RM10.88 million) and Selangor (RM11.95 million.)

The report added Sabah was the only state with unfinished computer labs, and that other states had long since completed the construction of the facilities in schools. Continue reading “Audit: Not even 1pc Sabah computer labs completed”

By Melissa Chi
The Malaysian Insider
Oct 24, 2011

KUALA LUMPUR, Oct 25 — The Ministry of Agriculture and Agro-Based Industry has yet to pay RM110.67 million it owed to more than 70,000 farmers under a scheme to encourage a higher rice production, according to the Auditor-General’s report today.

Citing Padiberas Nasional Berhad (Bernas), Malaysia’s rice industry regulator, the report said the farmers were eligible to receive RM341.29 million between January 2007 and January 2010. However, Bernas only managed to pay incentives worth RM230.62 million as at end 2010, citing lack of funds.

This resulted in 73,291 farmers not receiving incentives totalling RM110.67 million.

Bernas currently controls about 24 per cent of the paddy market and 45 per cent of the local rice demand. Continue reading “Ministry still owes RM110m farmers’ incentives, says audit report”

By Shannon Teoh
The Malaysian Insider
Oct 24, 2011

KUALA LUMPUR, Oct 24 — Malfunctions barely a year after the RM142 million RazakSat satellite was launched caused it to take 1,328 unusable images that were inaccurate by up 37km, the Auditor General’s report showed today.

The report made available today said state-owned Astronautic Technology Sdn Bhd (ATSB), which operates RazakSAT, lost RM10.89 million in 2009, of which RM7.7 million went towards insurance premiums for the faulty satellite.

“The operational lifespan of RazakSAT is three years. But the RazakSAT satellite failed to function fully on August 30, 2010, a year and sixteen days from launch date,” Auditor-General Tan Sri Ambrin Buang wrote.

The Auditor General added that the remote sensing satellite was designed to “capture images within 1km accuracy” but “an image of an area in Sungai Buloh and Subang missed by 37km and captured Kuala Selangor.” Continue reading “RM142m RazakSAT faulty after just one year, says federal auditor”