Audit report: CyberSecurity Malaysia used RM3.7m development grants for entertainment

The first series of the Auditor-General's Report 2016 was tabled in Parliament July 31, 2017. — Picture by Kamles Kumar
The first series of the Auditor-General's Report 2016 was tabled in Parliament July 31, 2017. — Picture by Kamles Kumar

KUALA LUMPUR, July 31 — CyberSecurity Malaysia (CSM) spent RM3.76 million in development grants meant for projects under the 10th and 11th Malaysia Plan to cover operational expenditures such as claims for entertainment activities and workshops, according to the latest Auditor-General’s report released today.

CSM, which is under the purview of the Ministry of Science, Technology and Innovation (Mosti) receives grants from the ministry and other government agencies for its expenses, as it is a “nonprofit-oriented company”.

It received operating grants of RM72.21 million and development grants of RM295.24 million from 2013 to 2016.

“... development grants for projects under the 10th MP and 11th MP totaling RM3.76 million were used for operating expenditure, such as entertainment expenditure claims, secretary week workshops and others.

“The usage of development grants for operating expenditure is not allowed except allocation for operating expenditure under the Shared Service Fee (SSF),” the A-G report said.

It added that expenses for three out of ten of CSM’s projects under the 10th Malaysia Plan (MP) exceeded the total allocation of RM727,402.

The audit report carried out from May to October 2016 stated that the overall financial performance of CSM from 2013 to 2015 was satisfactory, and its cash flow showed improvement for the three consecutive years.

But it advised CSM to be “more proactive” in generating revenue from the company’s activities instead of just depending on grants from the federal government.

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