RM 620 million in losses due to financial management non-compliance


Auditor General Datuk Nik Azman Nik Abdul Majid speaks at a press conference at the headquarters of the National Audit Department in Putrajaya on August 24 last year. – Photo of Malaysian Mail

KUALA LUMPUR (October 28): Federal ministries and departments’ non-compliance with financial management led to problems with irregular payments, loss of public funds and waste amounting to RM 620.07 million in 2020.

Auditor General Datuk Nik Azman Nik Abdul Majid said of the RM 510.49 million in irregular payments, RM 499.19 million were for payments for maintenance service requests without being verified at the Security Council level. national (MKN).

Meanwhile, of the RM 104.79 million loss of public funds, RM 81.69 million was for unclaimed penalties not imposed by the Immigration Department RM 4.79 million was for material received late and not installed in Istana Budaya.

“To enable corrective actions and improvements to be taken, the Auditor General submitted 29 recommendations, namely four recommendations for the audit of financial statements and 25 recommendations for compliance audits of federal ministries and departments to be considered for implementation. work by ministries and departments, ”he said.

He said so in a statement to Bernama after the Auditor General’s Report (LKAN) on Federal Government Financial Statements and the 2020 Federal Ministries and Departments Compliance Audit was filed with Dewan Rakyat today.

Nik Azman said that compliance audits involving a total of RM899.44 million had been carried out in three government departments and five federal departments, covering aspects of contract management amounting to RM772.40 million, government procurement (RM 54.8 million) and revenue collection (RM 72. 24 million).

Meanwhile, in the focus on the federal government’s financial statements, the Auditor General said that the federal government’s debt in 2020 was R879.560 billion, or 62.1% of gross domestic product (GDP ).

Federal debt increased by RM86.562 billion or 10.9% from RM792.998 billion or 52.4% in 2019.

According to the Auditor General, 50.4% or 98.058 billion ringgit of the 194.555 billion new loans in 2020 were used to finance the principal repayment of matured loans.

“This shows that the government is dependent on new loans to repay matured loans and on the use of Development Fund funds amounting to RM8.265 billion to repay commitments from the private finance initiative and financial institutions. guarantee commitments, ”he said.

In addition to this, a total of 2.65 billion ringgit was used to pay for the support of the hospitals and clinics of the Ministry of Health as well as the maintenance of the facilities of the Ministry of Education, which were previously paid to using operating expenses allowances.

“The funds from the Development Fund financed by loans should in fact be used to finance physical development projects that contribute to the creation of new capital that can improve the development of the country and have a high multiplier effect to generate economic activity, ”he said.

Meanwhile, federal government revenue fell 14.9% to RM 225.075 billion in 2020, from RM 264.415 billion the previous year, while spending on Covid-19 stood at RM 38.019 billion. RM.

Operating expenses decreased by 14.7% to Ringgit 224.6 billion, a decrease of Ringgit 38.743 billion from 2019, while development expenditure amounted to Ringgit 51.36 billion, i.e. a decrease of 2.813 billion ringgit or 5.2% compared to 54.173 billion ringgit in 2019.

Nik Azman said that overall, the federal government had a deficit of RM 87.645 billion with a deficit-to-GDP ratio of 6.2%, up from 3.4% or RM 51.37 billion in 2019.

According to the statement, the report (LKAN) contains three main elements, namely the audit of the financial statements of the federal government for the year ended December 31, 2020, the financial analysis of the federal government and the compliance audit of the ministries and federal departments.

Nik Azman said that overall, the federal government’s financial statements show a true and fair view of the government’s financial position for the fiscal year ended December 31, 2020 and its orderly and up-to-date accounting records.

This is the report’s second filing in the Dewan Rakyat this year following the filing of LKAN 2019 Series 2 on September 28. Also today, the National Audit Department briefed members of Parliament’s Public Accounts Committee on the main issues raised by the audit findings.

The LKAN report is available to the public via http://www.audit.gov.my starting at 10:10 a.m. today, while the 2020 Federal Ministries and Departments Compliance Audit Issues will be uploaded to the portal. from the Auditor General’s dashboard (AGD) from 11 a.m. – Bernama

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