KUALA LUMPUR, Dec 2 ― The Social Security Organisation (Perkeso) has an overdue payment of RM0.89 million yet to be paid to its suppliers with some stretching up to at least a decade, the National Audit Department (NAD) said today.
In its Confirmation of Financial Statements and Auditing Compliance of Federal Agencies 2018 report, the NAD revealed that RM890,542 had amounted to a total of 145 equipment procurements made by Perkeso’s Prevention, Medical and Rehabilitation Division (BPPP).
As of June 30, the Creditors Report showed that payments have not been made between 30 to 4007 days involving 145 transactions from 34 suppliers, the report showed.
It added that 72 of the 145 transactions which totalled RM330,210 have exceeded 365 days.
“The BPPP did not follow stipulated procedures and failed to execute them effectively which leads to its objective unable to be fulfilled,” it said.
The BPPP is responsible for carrying out security and medical activities for insured individuals through the Social Security Scheme and Self-Employed Employment Injury Scheme.
NAD also noted that Perkeso has made adjustments to the matter that was raised on September 20.
Meanwhile NAD also said three of the implant supply procurements totalling RM49,526 were made without a purchase order following an audit check.
“The implant supplies were approved by the suppliers before a procurement approval was obtained after the chief executive gave special clearance to make payments.
“However there are no rules stated in the Procurement Department’s Standard Operating Procedure that enabled spendings to be made through special clearances,” it said.
The NAD then recommended Perkeso to ensure strict compliance with the Procurement Procedure Manual in order for a transparent, efficient and effective procurement management.
“PERKESO must ensure the weaknesses that arise do not repeat itself in the future and for the program to achieve its objective,” it said.