Kuala lumpur: The Auditor-General's Report (LKAN) 1/2026 has highlighted significant weaknesses in expenditure management and internal controls during the initial phase of the MyDigital ID Project (MyDID), which was managed by MIMOS Berhad.
According to BERNAMA News Agency, the report on the Activities of Federal Ministries/Departments/Statutory Bodies and the Management of Federal Government Companies revealed that the project's governance structure did not function as required. There were no formal presentations on expenditure approvals or updates on the project's implementation status during meetings.
The report, tabled in the Dewan Rakyat, revealed that RM28.13 million was spent without the approval of the designated committee overseeing the project. This involved 11 project sub-scopes, with expenditures either unapproved or exceeding allocated funds by RM4.08 million. Additionally, one sub-scope exceeded its approved cost by RM70,000, showcasing non-compliance with the project's financial guidelines.
Further findings indicated that MIMOS used development funds to cover resource costs, emoluments, staff medical benefits, and office equipment, totaling RM14.09 million. This action contravened the 12th Malaysia Plan (12MP) Development Project Implementation Guidelines, which prohibit the use of development allocations for such expenses, highlighting a deviation from the approved purpose of vote.
From a procurement standpoint, the report noted that acquisitions of security cages and door access systems were made without approval from the Value Management Laboratory, and these items were not utilized. This led to financial wastage and pointed to weaknesses in asset control.
The report emphasized the responsibility of MIMOS's board of directors, including their representative, to exercise fiduciary powers and ensure compliance with governance processes and internal controls, safeguarding the MyDID Project's best interests. It stressed adherence to conditions set by the Home Ministry (KDN) regarding the management of MyDigital ID Sdn Bhd (MYDIDSB).
To avoid future issues, the report recommended MIMOS implement improvements ensuring all project expenditures align with committee approvals, comply with the cost structure, and adhere to the purpose of allocation. This includes following the 12MP Development Project Implementation Guidelines to prevent unauthorized expenditures from development funds.
Furthermore, MIMOS was urged to enhance the governance of development grants, ensuring decisions on allocations, project implementation, and procurement are transparent, accountable, and conform to existing regulations. In July 2023, MIMOS was appointed as the implementing agency for the MyDigital ID Project (MyDID), with an initial allocation of RM80 million.