KUALA LUMPUR: The government lost RM108 million due to non-compliance in financial management.
The Auditor General's Report said these irregularities resulted in irregular payments, loss of public funds and wastages.
This matter was revealed in the report's section related to "Federal Agencies Financial Statements and Compliance Auditing 2021".
The report said the Railway Assets Corporation (RAC) has the potential of losing revenue amounting to RM24.45 million, following weaknesses in recording, monitoring and enforcement on collection of rental income for real estate.
"Audit findings found that the rental income for real estate amounting to RM12.84 million was not collected; the rental income for real estate as per rental agreement amounting to RM170,474 was not collected and the rental income for real estate as per Rental Offer Letter (ROL) amounting to RM12.67 million was not collected.
"It was also found that the rental income for real estate amounting to RM11.61 million was not charged to Keretapi Tanah Melayu Bhd's (KTMB) subsidiary," said the report.
It also found weaknesses in the implementation of compensation claims against scholarship holders who breach contracts in Universiti Teknologi Mara (UiTM) amounting to RM 58.57 million.
"Those weaknesses that need attention are the write off debt for 86 scholarship recipients who breached the contracts amounting to RM6.23 million and the compensation claims totaling RM1.26 million for 20 scholarship recipients who breached the contract which cannot be claimed as a result of lateness in the process of compensation claims.
"Also, there is a potential loss of income totaling RM51.08 million due to delay in compensation claims for 239 scholarship holders who breached the contract."
The report also found weaknesses for the Ladang Merdeka Project under the Kemubu Agricultural Development Board (KADA).
"The weaknesses that need attention are on the distribution of padi proceeds amounting to RM4.36 million to the representatives of participants who could not be verified, as well as padi proceeds amounting to RM471,996 which were not distributed to the Ladang Merdeka Project participants at the end of the padi planting season."
The audit process on the collection of debtor's claims for study leave compensation at
Universiti Kebangsaan Malaysia (UKM) found the possibility of losing revenue amounting RM1.50 million.
"Overall, UKM has implemented T.E.R.A.S UKM 2021-2025 strategic plan to increase cooperation with renowned universities and encourage academic staff to increase their expertise in the fields that have been identified.
"However, delays in taking action against debtors caused UKM to lose revenue amounting to RM0.64 million; and reduction of debt repayment and payment of compensation for study leave in kind amounting to RM0.86 million could not be collected due to the collection of claims being limited by the Time Limit Act 1953 [Act 254] as well as in-kind not executed by the debtor."
Meanwhile, an audit of payment for four buildings of the Companies Commission Malaysia (SSM) between 2016 and 2019 found potential losses amounting to RM1.04 million due to the value of 52 parking lots that have not been provided at Menara SSM in Sarawak.
The department also found significant weaknesses in the collection of lease rental income for the Livestock Feed Pilot Plant under the Malaysian Palm Oil Board (MPOB), which resulted in uncollected revenue amounting to RM600,300 that has been written off.
An audit on the payments for furniture and fittings supply of the Armed Forces Family Housing (RKAT) at Parcel 2C Taman LTAT in Bukit Jalil by the Armed Forces Fund Board (LTAT) found that the additional work amounting to RM280,000 was approved beyond the expiration of the contract.
Meanwhile, the audit of the grants' expenditures for SME Investment Partner Programme (SIP) and Going Export (GoEx) Programme by Small and Medium Enterprises Corporation.
