KUALA LUMPUR, Oct 5 — Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi has recommended that the Malaysian Marine Department immediately halt allowance payments and the provision of facilities until the legal interpretation and financial procedures governing each payment category are finalised.
This follows the disbursement of RM2.55 million in allowances and facilities in 2025 through the Light Dues Fund and Marine Trade Centre Fund trust accounts without valid legal authority.
The payments were not provided for under the Federal Light Dues Act 1953, the Merchant Shipping Ordinance 1952, or the Financial Procedure Act 1957 (Act 61).
Under Act 61, authority over federal financial matters not specifically provided for under any Act or ordinance is vested in the Finance Minister.
In a statement on the Auditor General’s Report (LKAN) 2/2026 today, the National Audit Department (JAN) said the Auditor-General had also recommended that the Finance Ministry review payments and facilities funded through all Government Trust Funds and Public Trust Funds.
LKAN 2/2026, which covers the federal government’s Financial Statements for 2025; the activities of federal government ministries and departments; and the financial statements and activities of state governments, agencies, ministries and departments, and the management of state-owned companies, was tabled in the Dewan Rakyat today.
Meanwhile, JAN reported that outstanding Contractor Advance Payment (WPK) receivables totalling RM68.81 million involving 24 projects remained uncollected, with RM59.63 million, or 86.7 per cent, outstanding for more than 10 years.
A significant portion of the arrears involved companies that had been wound up or dissolved, while delays in follow-up action had also hampered collection efforts.
In addition, WPK balances totalling RM5.67 million involving two projects had not been reported as WPK receivables, resulting in an inaccurate reflection of the actual receivables position.
“The Auditor-General recommends that the relevant ministry take follow-up action by submitting Proof of Debt forms to the Malaysian Department of Insolvency for companies that have been wound up, initiating legal action against active companies, and ensuring that all WPK receivables are promptly reported,” it said.
JAN also reported that, as of December 31, 2025, outstanding receivables for utility relocation costs totalled RM90.50 million, of which RM84.05 million, or 92.8 per cent, had been outstanding for more than 12 months.
However, RM30.46 million of the amount should not have been recorded as Accounts Receivable (ABT), as it involved 10th Malaysia Plan projects fully funded by the government.
Meanwhile, utility relocation costs totalling RM63.16 million involving 11 projects remained unclaimed, despite the six months following the issuance of the Certificate of Practical Completion having expired.
“This situation compromises the accuracy of government revenue records and reporting, and increases the risk of delays in recovering utility relocation costs.
“Accordingly, the Auditor-General recommends that the Ministry of Works ensure that ABT records on utility relocation cost reimbursements are reviewed, verified and updated regularly, and that claims are submitted within the stipulated timeframe,” it said.
