Search
Close this search box.

KWDA Payment Suspension Could Impact Navigation Safety in Straits of Malacca

Kuala Lumpur:Prolonged suspension of allowances and facilities payments from the Light Dues Fund (KWDA) could have significant operational implications, particularly affecting navigation safety management in the Straits of Malacca, according to Deputy Transport Minister Datuk Hasbi Habibollah.

According to BERNAMA News Agency, Deputy Minister Hasbi indicated that critical operations such as the Vessel Traffic Services (VTS), Vessel Traffic Management Information System (VTMIS), Maritime Rescue Coordination Centre (PUSKAU), and Maritime Operations Centre (PUSKOM), which all operate continuously on a shift basis, could be affected.

He further noted that the suspension also impacts navigation safety management and the maintenance of aids to navigation in the Straits of Malacca, a vital waterway traversed by over 100,000 vessels. Hasbi made these remarks while concluding the debate on the Auditor-General's Report (LKAN) 2/2026 for the ministry in the Dewan Rakyat.

The report highlighted that RM2.55 million was spent from the KWDA and the Marine Trading Central Fund (KWPPL) on allowances and facilities in 2025 without valid legal authority. Out of this, RM2.31 million involved KWDA funds used for allowances and facilities for the KWDA Board and officers of the Marine Department Malaysia (JLM).

The National Audit Department (JAN) has recommended halting the payment of allowances and facilities from these trust accounts until legal and financial procedures are clarified.

Hasbi also mentioned that the suspension could impact strategic projects, such as the strengthening or reconstruction of the Tompok Utara Lighthouse. The Lighthouse Board had agreed to allocate RM23.5 million for this purpose to the National Security Council (MKN).

From a legal standpoint, Hasbi pointed out that while the Federal Light Dues Act 1953 (Act 250) does not explicitly provide for the payment of allowances to the Lighthouse Board's chairman and members, there is a basis for considering expenditure directly related to the board's statutory functions.

In a related development, Deputy Education Minister Wong Kah Woh reported on the recovery actions taken for arrears involving Contractors' Advance Payments (WPK) during the LKAN report debate for his ministry. The Education Ministry has submitted proof-of-debt forms to the Insolvency Department of Malaysia (MdI) for ten of the eleven wound-up companies, involving RM20.79 million.

For two active companies with outstanding arrears totalling RM5.43 million, notices of termination have been issued, and they could face civil action or Letters of Demand (LODs) for contract breaches.

The Audit Department's LKAN 2/2026 highlighted that RM68.81 million in outstanding receivables involving WPK from five ministries remained uncollected as of December 31, involving 24 projects under the Education Ministry, Transport Ministry, Defence Ministry, Home Ministry, and Works Ministry.

Recent News