23/07/2025

WEDNESDAY | JULY 23, 2025

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Lessons not learnt despite repeated audit warnings

Ű BY QIRANA NABILLA MOHD RASHIDI newsdesk@thesundaily.com

PETALING JAYA: Despite the Auditor-General’s annual reports repeatedly flagging irregularities and weaknesses in government departments, lessons are rarely learnt and accountability remains weak, said former auditor-general Tan Sri Ambrin Buang ( pic ). “I’ve always believed the report offers valuable insights. But who’s actually willing to read and act on them?” he asked. The onus, he said, is on controlling officers such as the secretaries-general and department heads, to take audit findings seriously and initiate reform. “The auditor-general can highlight the problems, but it’s up to ministries and agencies to follow through. Without ownership, the same issues will keep resurfacing.” His comments come in the wake of the latest report, which has once again brought to light a familiar list of financial mismanagement, weak internal controls and procedural breaches. The Auditor General’s Report (Series 2) released on Monday, flagged serious irregularities and weaknesses in projects and programmes involving seven ministries. Five audits involving seven ministries, with an overall cost of RM48.873 billion, were reported. Alliance for a Safe Community chairman Tan Sri Lee Lam Thye said the government must treat the findings with urgency or risk normalising weak accountability. He said repeated red flags reflect not just administrative lapses but KUALA LUMPUR: The reduction in egg subsidies from 10 sen to five sen per egg, which took effect on May 1, is expected to save the government RM135 million over a three-month period, ahead of the full removal of price controls next month. Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the move helps reduce government spending by RM45 million each month. It said the revised rate, announced under Budget 2025, will apply to employers nationwide, regardless of the number of employees hired, following the end of a six-month deferment period on July 31. “Effective Aug 1, all employers must comply with the wage order. “This includes non-citizen employees and contract apprentices, but does not apply to domestic workers. All employers are required to adhere to the order

o AG reports flag same irregularities every year, but weak follow-through and lack of ownership keep issues recurring, says former auditor-general

transparency in procurement. An online dashboard should be created so the public can track how government funds are being spent.” Lee pushed for periodic integrity audits, particularly for high-risk departments, to detect early signs of misconduct and not just financial irregularities. He also called for parliamentary oversight to be tightened. “The Public Accounts Committee must have the authority to summon not just department heads, but ministers too. Accountability should not stop at middle management. “The public deserves better. Malaysians are paying taxes, yet the people entrusted with those funds behave with carelessness or, worse, dishonesty.” Meanwhile, political analyst Prof Dr Azmi Hassan said the AG report is a vital tool for transparency but not every issue flagged should be treated as a scandal. The Nusantara Academy for Strategic Research fellow noted that many findings in the report stem from operational shortcomings rather than outright mismanagement. “Some reflect inefficiencies that can be addressed internally without external scrutiny,” he said. The ministry warned that failure to comply with the order is an offence under the National Wages Consultative Council Act 2011, which carries a fine of up to RM10,000 for each affected employee, with an additional penalty of RM1,000 for each day the offence continues after conviction. For repeat offences, the maximum penalty may reach RM20,000 or imprisonment for up to five years. The ministry also encouraged employers to adopt the voluntary progressive wage policy that serves to complement the implementation of the minimum wage order. from Datuk Seri Sh Mohmed Puzi Sh Ali (BN–Pekan), who asked about the savings from the subsidy adjustment and its impact on prices and cost of living. Mohamad gave an assurance that the reduction and removal of subsidies would not disrupt the egg industry, which is showing positive signs, including lower chicken feed costs. He said the move allows the government to reallocate funds to

also a deeper culture of negligence. “Delays in project completion, overpayments, failure to follow procedure and procurement without documentation – these aren’t minor slip-ups. They signal systemic failures and a lack of integrity among those entrusted with public funds.” Lee said the latest

report once again exposed a familiar cycle of financial mismanagement, procurement irregularities and regulatory breaches, often with little consequence. “We urge the government to act swiftly. If no disciplinary or legal action is taken against those

The AG report flagged “serious irregularities” and “weaknesses” in projects and programmes involving seven ministries. – SYED AZAHAR SYED OSMAN/THESUN

audit reports. “Agencies should not wait for problems to be expose. They should correct them as part of good governance. When there’s clear misuse of funds, that’s when enforcement bodies like the MACC must step in.” Azmi also stressed the importance of distinguishing between poor management and operational lag. “The AG Report should not be seen in black and white – it is more nuanced than that.” ‘AI tool to detect dengue hotspots’ KUALA LUMPUR: The Health Ministry is developing an artificial intelligence (AI) system to predict and identify dengue hotspots, as part of efforts to strengthen early detection and outbreak response. Health Minister Datuk Seri Dr Dzulkefly Ahmad told the Dewan Rakyat yesterday that the tool is designed to pinpoint high-risk areas before case numbers rise, enabling more targeted intervention. “Dengue-related deaths have exceeded Covid-19 fatalities. To date, there have been 21 dengue deaths, compared with just one from Covid-19,” he said during the question-and-answer session. However, he noted the situation has improved from last year, when Malaysia recorded over 83,000 dengue cases and 117 deaths. Dzulkefly said Selangor continues to record the highest number of cases, followed by Kuala Lumpur. He also highlighted the effectiveness of the wolbachia mosquito programme, which is being implemented in 45 localities. The programme has achieved success rates of between 45% and 100% in suppressing Aedes mosquito populations, he added. – Bernama

Azmi cautioned that while the report helps expose serious breaches, it can also paint an overly grim picture by highlighting issues that are routine administrative challenges. “For example, when it comes to university research grants, it’s hard to directly link funding to immediate commercial returns. It’s not something you can measure in simple terms.” He added that ministries and agencies should proactively fix such issues before they appear in “Through the policy, employers have the opportunity to raise employees’ incomes based on productivity, skills and work contributions, while also benefiting from targeted cash incentives provided by the government. This helps companies retain highly skilled workers and strengthens long term competitiveness in an increasingly challenging labour market.” Complaints regarding the implementation of the minimum wage order can be submitted to the Labour Department offices nationwide or via the ministry’s website. – Bernama programmes that benefit the public more directly. He also noted that the inflation rate for eggs dropped by 5.3% in May, although not all egg grades saw the same decrease due to market adjustments following the new subsidy system. To maintain stable supply and pricing, he said his ministry and the Domestic Trade and Cost of Living Ministry will closely monitor the situation. – Bernama

responsible, the cycle will continue. Without consequences, there’s no deterrence.” He called for the beefing up of internal audit units, making them independent and capable of real time monitoring, not just post-event reviews. “There also needs to be greater

Minimum wage order to be enforced next month PUTRAJAYA: The minimum wage order of RM1,700 per month will come into effect next month, the Human Resources Ministry said yesterday. to ensure employees’ rights are protected in accordance with prevailing laws.”

He said egg supply is currently stable and prices in the market remain reasonable. “As of July 2, estimated monthly production was 1.75 billion eggs, while domestic demand is around 1.06 billion. This means there’s a surplus of about 690 million eggs, some of which are exported,” he said during the Dewan Rakyat’s question-and-answer session yesterday. He was replying to a question The order has been in effect since Feb 1 for employers with five or more workers, as well as those engaged in professional activities classified under the Malaysia Standard Classification of Occupations 2020. The ministry reminded employers to review their company’s wage structure to ensure no employee receives a basic salary below the stipulated minimum rate and to progressively adjust operations by focusing on productivity enhancement and employee skills training.

‘Egg subsidy to save govt RM135 million over three-month period’