GEORGE TOWN, May 30 — Penang has a strong financial position, registering accumulated consolidated fund reserves of RM1.821 billion at end-2020 compared with RM2.1 billion at end-2019.

According to the Auditor-General's (AG) Report 2020 Series 1 on the Management of Penang State-owned Companies, the consolidated revenue account balance decreased 23.1 per cent to RM887.78 million from RM1.155 billion at end-2019.

"Revenue collection decreased 29.4 per cent to RM467.28 million from RM661.52 million in 2019. The state government ended the financial year 2020 with a deficit of RM267.06 million against a surplus of RM80.21 million in 2019," according to the report released here today.

As for the AG's Report 2020 Series 1, the management auditing of a state-owned company was carried out at PDC Nusabina Sdn Bhd (PDCN) where overall, the company was found to have not fully achieved the objectives of its establishment as a contractor that actively participated in the construction industry.

However, the report commended that the company’s performance in building construction, civil engineering, and building and infrastructure maintenance activities was good as it earned a revenue of RM72.87 million from 2018 to 2020, contributing 98 per cent to its total revenue.

"However, the implementation of activities was unsatisfactory due to late completion of projects, the appointment of subcontractors who were not on the pre-qualification list, and increased labour costs. Site meal payment management was not clear and not detailed.

"PDCN's corporate governance practices were at an unsatisfactory level where seven aspects of the company's best corporate governance practices were not fully practised. In terms of financial position, PDCN is on a strong footing as it recorded profits for three consecutive years,” he said. — Bernama