26/03/2026

THURSDAY | MAR 26, 2026

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Malaysian Paper

/thesundaily /

‘Financial misconduct from audit merely tip of iceberg’

KUALA LUMPUR: Serious lapses in financial governance have again come under scrutiny, with the 2026 AG Report highlighting widespread mismanagement across government entities. The findings underscore persistent weaknesses in oversight and accountability, pointing to systemic challenges in public sector operations. Among the most glaring cases is at Universiti Kebangsaan Malaysia (UKM) – the report flagged RM183.11 million in unreturned research grants involving 7,904 projects. Overall, the report, which was presented in Parliament in February, recorded 273 cases of financial mismanagement – one of the highest tallies in recent years. The Higher Education Ministry holds the largest share of the amount, totaling RM110.67 million. Key findings from the report are as follows: 0 Unreturned research grants; the RM183.11 million in unreturned grants involved five research universities, with UKM heavily involved. 0 Unauthorised fee collection; UKM’s cooperative collected RM50.74 million in student fees without proper authorisation. 0 Unrecorded revenue; RM32.36 million in revenue was not properly recorded as university income. 0 Irregular expenditures; the audit found RM6.69 million in irregular expenses, including commissions to unauthorised agents and conflicts of interest. 0 The 273 cases also included over RM28 million spent on the MyDigital ID project without committee approval. Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi said all issues are accessible on the Auditor General’s Dashboard (AGD), allowing for continuous monitoring and follow-up by relevant federal and state authorities. “Between 2024 and Dec 2025, the AGD system has facilitated government recoveries and repayments totalling RM316.68 million. From this, RM221.52 million came from federal agencies, including penalty claims, outstanding rents, land leases and duty and tax collections.” She added that a major audit focus was on the irregularities in UKM’s revenue collection and expenditure. The irregularities, she said, came from collaboration agreements made without the approval of the Finance Minister, contrary to the university’s constitutional provisions. She also said some spending did not comply with established financial procedures. The report also revealed the use of corporate credit cards by unauthorised individuals. – By Andrew Sagayam 2026 AG Report exposes deep governance lapses

o True extent of losses vastly bigger, demands greater concern, says former auditor-general

Ű BY ANDREW SAGAYAM newsdesk@thesundaily.com

or agency, is responsible or authorised to oversee the approval of allocations and spending. “The respective Controlling Officers must not act beyond their authority limits as specified in the various financial circulars issued by the Treasury. “Prior written approvals should be obtained from the Treasury for any exemptions from any government financial rules and procedures, such as in exceeding their original allocation or procurement method.” He also said most ministries, departments or

KUALA LUMPUR: The recent 2026 Auditor-General’s report which revealed that there were 273 new cases of financial mismanagement, is only the “tip of the iceberg”, according to former auditor-general Tan Sri Ambrin Buang (pic). He told theSun , in an exclusive interview, that the AG report, which is also facilitating RM316.68 million in government recoveries, only randomly covered a small fraction of the multitude of programmes and projects handled by the government. “Since the report is

agencies have their own internal audit divisions, which should regularly check the work of their financial and development division, and send reports to their respective audit committees. When asked if action should be taken against all the

based on a very limited sample, the true extent of such losses is vastly bigger and should be of much concern to those tasked with handling public money. “While the nature of such weaknesses looks familiar and keep recurring, the auditees

agencies and bodies mentioned for financial mismanagment in the report, Ambrin said secretary generals of ministries, director generals of departments and agencies are duty-bound to promptly respond to issues highlighted by the auditor-general by taking corrective actions for non-compliance with current financial laws and regulations. “Acts of gross negligence or fraudulent practices are voluntarily reported to enforcement agencies such as the Public Service Department, the Malaysian Anti Corruption Commission or the police, requesting a full and independent investigation before taking appropriate disciplinary or criminal action. “By prompt action, I mean they should not wait until the AG tables a report to Parliament before taking action, which would be several months after the audit report is finalised following the exit conference arranged by the AG. “This way, they could demonstrate that they are taking the

are different each year,” said Ambrin, who was in charge of the National Audit Department from 2006 to 2017. Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi said the report, tabled in the Dewan Rakyat, spans 15 volumes and covers the 2024 financial statements of federal agencies. It also audits the activities of federal and state ministries, departments and statutory bodies. When asked what should be done to counter the issue of financial mismanagment, Ambrin said mismanagement is mainly due to irresponsible officers not adhering to established rules and regulations, as specified in the Treasury Instructions or the SOP. “This may be due to their ignorance or negligence, which would reflect on their competency, or their motive for self-gratification in collaborating with other parties to commit fraud, false claims, falsification of data and documents, or bid-rigging.” He added that the Controlling Officer of each ministry, department

Ambrin said most ministries, departments or agencies have their own internal audit divisions, which should regularly check the work of their financial and development division and send reports to their respective audit committees.

audit issues seriously by taking remedial actions even before media exposure. “Also, their audit committee must promptly discuss the issues to determine a timeline for weaknesses to be rectified, and identify (a responsible party) and report to the AG.” Ambrin said the report would always highlight weaknesses in the public sector financial management, whether in terms of revenue collection or expenditure on government programmes and projects. “It would normally expose cases of negligence or inefficiency, as well as misappropriation of public funds and leakages such as extravagant or wasteful spending, which has caused financial and reputational losses to the government as well as public outcry. “More importantly, there is an immediate need to reduce and stop

such losses. “The

money

should

be

directly build better infrastructure, enchanced healthcare and improved education for the benefit of Malaysians.” Ambrin said in 2018, he was appointed as the Chairman of the Special Committee on Procurement, Governance and Finance, which is tasked with investigating and improving government processes, particularly public procurement and administrative procedures. He added that this role in public procurement was as difficult as his previous role as Auditor-General, as the public sector’s purchase of goods and services which make up over than RM60 billion each year. Currently, Ambrin is the chairman of Gamuda Berhad (appointed on Feb 1, 2023) and a member of the Selangor Royal Council. chanelled to

Malaysia backs US-Iran dialogue proposal

“Any negotiation must proceed on the basis of genuine intent: a commitment to ending the conflict, not managing its tempo for tactical advantage. The international community has seen too many ceasefires that function as pauses rather than conclusions. The region deserves something more durable.”

complicated by the involvement of the US. Anwar said Malaysia supports the initiative and encourages the US and Iran to respond in the spirit in which it was offered. He added that there are “signals, however incomplete, that suggest some space for diplomacy may still exist”.

historically played out through proxy groups and covert operations across the region, including in Lebanon and Syria. In recent months the conflict has intensified and heightened concerns over regional stability, global energy markets and the security of key shipping routes in the Gulf. The situation is further

Prime Minister Datuk Seri Anwar Ibrahim said the offer by Pakistan Prime Minister Shehbaz Sharif comes at a critical moment and could help create conditions for meaningful negotiations. The latest tensions come against a backdrop of a long-running rivalry between Iran and Israel, which has

Ű BY THE SUN TEAM newsdesk@thesundaily.com

PETALING JAYA: Malaysia has expressed support for Pakistan’s proposal to host a dialogue between the United States and Iran, as tensions in the Middle East continue to escalate.