24/02/2026

TUESDAY | FEB 24, 2026

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Audit exposes financial irregularities at UKM

Ű BY HARITH KAMAL newsdesk@thesundaily.com

PETALING JAYA: Auditor-General Datuk Seri Wan Suraya Wan Mohd has uncovered 273 new financial and administrative issues in the latest audit report, exposing weaknesses across federal and state agencies as well as government-linked companies. The findings, detailed in Auditor General’s Report Series 1/2026, cover the 2024 financial statements of federal agencies, the operations of ministries and departments at both federal and state levels, and the management of statutory bodies and state-owned companies. The issues are now publicly available on the online Auditor General’s Dashboard, allowing for monitoring and follow-up by relevant authorities. Wan Suraya said the dashboard had facilitated recoveries and repayments totaling RM316.68 million between 2024 and December 2025, including RM221.52 million recovered from federal agencies through penalties, rental arrears, land leases, duties and taxes. As of Jan 9 this year, 143 of 145 federal agency financial statements had been submitted and certified. Of these, 128 received unqualified audit opinions, while 15 were issued modified opinions. The cases have been referred to the Serious Irregularities Action Committee, co-chaired by Wan Suraya and Treasury secretary-general Datuk Johan Mahmood Merican, under expanded powers from amendments PETALING Universiti Kebangsaan Malaysia (UKM) has been taken to task over governance and financial irregularities, with over RM30 million in student fees unaccounted for and millions in irregular spending, according to the Auditor-General’s Report 1/2026. The report revealed that 2024 offer letters for the Master’s of Education and Postgraduate Diploma in Education programmes set total student fees at RM60.77 million. Of this, RM50.74 million was collected by Koperasi B-5-1788, a cooperative not formally authorised under the UKM Constitution to collect fees on the university’s behalf, it said. Meanwhile, RM32.36 million of the fees were not recorded as university revenue, with only RM28.41 million reflected in UKM’s accounts, it added. Delays in fund transfers from the co-op to the university were also flagged, with RM21.02 million remitted late by between 31 and 291 days, while RM5.32 million remains outstanding, pending transfer for periods ranging from one year to more than three years. The audit also highlighted potential conflicts of interest, noting that five UKM officers hold key positions in the cooperative. “The authority to collect student fees is a statutory function of the university through its Board of Directors,” said Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi. The June 15, 2023 cooperative agreement lacked approval from the JAYA:

Investment, Trade and Industry minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz has defended the government’s handling of the Agreement on Reciprocal Trade (ART) with the United States, rejecting claims that Malaysia could face tariffs “almost twice” as high as other countries. In a Facebook post, he addressed former Economy minister Datuk Seri Rafizi Ramli, urging him to “stop spinning the narrative.” Rafizi had said Malaysia might face doubled tariffs following the US Supreme Court ruling, blaming the government’s haste in signing the ART. “What exactly is this ‘double tariff’ we’re supposedly paying?” Tengku Zafrul asked, adding that the Supreme Court’s move to strike down the tariffs meant the 19% tariff previously imposed on Malaysia would no longer apply. He likened the ART to travel insurance. “Before travelling, people often think nothing will happen. But if you end up hospitalised overseas, the bill could reach tens of thousands of ringgit. That’s when you understand why paying for takaful coverage is important. ART works the same way – we prepare early.” He said the government could not wait for US court proceedings, adding that any delay, especially if a decision had favoured US with the UKM Constitution. The audit also revealed that across four ministries and six implementing agencies, RM183.11 million in research grants remain outstanding, covering 7,904 projects. Treasury rules explicitly state that funds that have not been spent cannot be diverted without approval. Yet nearly 50% of the funds have remained outstanding for five to nine years, with 5.3% unused for more than a decade. Five universities under the Higher Education Ministry – Universiti Kebangsaan Malaysia, Universiti Teknologi Malaysia, Universiti Sains Malaysia, Universiti Putra Malaysia and Universiti Malaya – hold RM110.67 million in outstanding grants from 7,823 completed projects as of June 30, 2025. The Investment, Trade and Industry Ministry follows with RM55.64 million, the Science, Technology and Innovation Ministry with RM14.33 million and the Agriculture and Food Security Ministry with RM2.47 million. Th report also said unmonitored grant funds risk being misused, undermining the effectiveness of public research spending. In the case of the Investment, Trade and Industry Ministry, some

to the Audit Act 1957. Other include Perbadanan Perwira Harta Malaysia, whose assets were insufficient to meet liabilities, along with issues in several federal entities. Following amendments to the Audit Act, 1,856 additional entities, including firms with government guarantees, are now subject to audit under the “Follow the Public Money” approach. Analysis via the new e-SelfAudit system also revealed issues at both federal and state levels. Among 852 federal entities, four companies were operating outside their original objectives, 13 profitable companies under Minister of Finance Incorporated failed to pay dividends and nine are facing operational concerns despite government support. At the state level, audits covered programmes in Kelantan, Pahang, Sarawak, Sabah, Terengganu and Kedah, along with 18 companies. The e-SelfAudit system was applied to 1,004 state-level companies across 13 states. Wan Suraya said the report also includes audits of major initiatives, including the Research, Development, Commercialisation and Innovation Programme and spending on the MyDigital ID Development project. The auditor-general’s report is available on the official website of the National Audit Department: https://lkan.audit.gov.my – By Harith Kamal concerns Finance minister, breaching the UKM Constitution, she said. Irregular expenditures were also documented. Of the RM57.67 million spent on services and supplies in 2024, RM6.69 million did not comply with regulations, she added. This included commissions paid to ineligible agents, overseas expenses for individuals with no UKM affiliation, industrial attachment allowances for ineligible students, unauthorised advances and procurements that bypassed the quotation committee process. “The findings reflect serious irregularities and breaches of governance in both revenue and expenditure management.” The report urged UKM to tighten oversight of student fee collections, review and monitor all cooperative collected fees, ensure timely transfers and recover outstanding funds. It also called for a review of all existing and future cooperative agreements to ensure compliance o Over RM30 million in student fees unaccounted for

The report urged UKM to tighten oversight of student fee collections, review and monitor all cooperative-collected fees, ensure timely transfers and recover outstanding funds. – AMIRUL SYAFIQ/THESUN

Committee and sought Finance Ministry approval to repurpose funds. The Science, Technology and Innovation Ministry returned uncommitted balances and submitted requests for larger allocations, while the Agriculture Ministry is in the process of returning remaining project funds.

outstanding Eleventh Malaysia Plan funds were allegedly used for Twelfth Malaysia Plan projects without Finance Ministry clearance. Agencies have since taken steps to address the backlog. The Higher Education Ministry has formed a Research Fund Balance Management

More than 200 finance, admin issues flagged in report

Tengku Zafrul defends trade deal with US PETALING JAYA: Former

General’s Office to issue a legal opinion on its validity. Highlighting the impact of the new 15% US tariff, the MPs said: “Trump first announced a 10% tariff, then increased it to 15% within hours. The tariffs last 150 days and may face further challenges in the US Supreme Court. Malaysian exporters need clarity.” They added that exporters who have already paid tariffs must be reimbursed. “We urge the prime minister to exercise extreme caution and not commit to any new trade agreements that could compromise Malaysia’s sovereignty. Current tariffs are unlawful, but future ones remain uncertain,” Wong said, ahead of Prime Minister Datuk Seri Anwar Ibrahim’s upcoming trip to Washington. They also reiterated calls for an independent Royal Commission of Inquiry to investigate how the ART was negotiated and signed. Anwar on Sunday said the Cabinet would meet this Friday to discuss the deal. He has received a briefing from current Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani and would review the matter carefully before any decision. Johari earlier said the government is closely monitoring US policy changes following the Supreme Court ruling. – By Harith Kamal

President Donald Trump, would have left Malaysia scrambling. “In today’s global trade environment, those who move slowly pay a heavy price. That’s why we must act early,” he said, adding that the EU and UK, as well as Japan, South Korea and Indonesia had also taken steps to provide certainty to their industries. “This is not about who talks the loudest. It is about who acts first to protect the nation’s economy.” The ART deal, signed last October during the Asean summit, has drawn criticism, with some viewing it as a concession that could compromise Malaysia’s sovereignty. Rafizi, who is Pandan MP, and three other government backbenchers – Subang’s Wong Chen, Pandan’s Datuk Seri Rafizi Ramli, Setiawangsa’s Nik Nazmi Nik Ahmad and Petaling Jaya’s Lee Chean Chung – have urged the government to suspend ratification of the ART in light of the ruling. They said the decision raises serious questions about the agreement’s legality. “The tariffs were unlawful, which means the ART is also unlawful from the start. Ratification should be suspended until all tariffs comply with US law,” they said at a press conference in Parliament yesterday. They called on the Investment, Trade and Industry Ministry to disclose the steps for ratifying the ART and urged the Attorney