Projects completed but eight federal agencies still owe Finance Ministry RM83.67m, audit finds

A Google screenshot of the Finance Ministry. Eight federal agencies have yet to return balance grants amounting to RM83.67 million to the Ministry of Finance.
A Google screenshot of the Finance Ministry. Eight federal agencies have yet to return balance grants amounting to RM83.67 million to the Ministry of Finance.

KUALA LUMPUR, Dec 2 ― The 2018 Auditor-General's Report today revealed that eight federal agencies have yet to return balance grants amounting to RM83.67 million to the Ministry of Finance.

This is despite the fact that the 67 projects and programmes have been fully completed.

The report stated that the balance grant was not returned as the grant distribution letter from the ministry did not specify the terms of use of the grant in detail.

The eight agencies were Malaysian Highway Authorities (MHA), Construction Industry Development Board Malaysia, Forest Research Institute Malaysia, Malaysia External Trade Development Corporation, Intellectual Property Corporation of Malaysia, Fisheries Development Authority of Malaysia, Malaysian Agricultural Research and Development Institute and  Federal Agricultural Marketing Authority.

“MHA tops the list with balance grant RM68.73 million is yet to be returned on 13 development projects which have been completed between 2013 to 2018,” the report reads.

The report also said that a total of the accounts of 26 MHA projects relating to the highway development, which are currently operational have yet to be finalised.

“MHA informed that this is due to the refinement process which is still pending for these projects,” the report read.

The report also pointed out that two Federal agencies ― Malaysia Productivity Corporation and Intellectual Property Corporation of Malaysia ― had misused the grants for different purposes among which paying for contract workers, claims payment and also paying for housing loans.

The report also said that Majlis Amanah Rakyat and National Sports Institute had overspent from the amount of the grant which they have received.

The report stated that the ministry has supplied management grant worth RM2.224 billion to 32 Federal agencies last year, while development grant worth RM3.129 billion were distributed to 39 Federal agencies on the same year.

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