Kuala lumpur: Serious irregularities identified in three audits were detailed in the 2025 Auditor-General’s Report (LKAN) Series 2, which was tabled in the Dewan Rakyat today. Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi highlighted governance weaknesses in the implementation of leasing procurements for four oil palm plantations by FELCRA Berhad, with acquisitions valued at RM241.76 million from 2022 to 2024.
According to BERNAMA News Agency, there were significant irregularities and weaknesses in the tender procurement process and procurement governance at Universiti Kebangsaan Malaysia (UKM), involving three tenders worth RM58.45 million. The audit also reported weaknesses in contract administration and procurement management for the army’s armoured vehicles between 2020 and 2023, including RM162.75 million in penalties yet to be collected and RM1.42 million in penalties not imposed on the company for delays in maintenance services.
The procurement of maintenance services, repairs, and supply of spare parts for armoured vehicles amounting to RM107.54 million was found to have been conducted through contract splitting. Additionally, weaknesses were identified in the implementation, monitoring, and enforcement of the subsidised cooking oil programme by the Ministry of Domestic Trade and Cost of Living (KPDN), particularly the lack of targeted allocation for eligible and needy groups.
Wan Suraya noted that KPDN’s efforts to reduce the subsidised cooking oil supply quota since 2016 should be sustained, as this could positively impact curbing leakages through more targeted distribution, aligning with audit recommendations. She also expressed concerns over the Selective Pre-Q Procurement Method introduced by the Ministry of Finance, which allowed room for manipulation and lacked transparency, recommending a shift to the open tender method for better accountability and transparency.
The report covered five audits involving seven ministries, addressing audited programmes, activities, and projects worth RM48.873 billion. The Auditor-General submitted 22 audit recommendations to the ministries, departments, and government-owned companies. Wan Suraya also stated that audits by the National Audit Department from 2024 to June 2025 facilitated the recovery of RM157.73 million for the government, including through penalty claims, outstanding rent, and the collection of duties and taxes.