KUALA LUMPUR, Nov 5 — Parliament’s Public Accounts Committee (PAC) today said it was told the federal government's financial statements as of December 31, 2019 showed a true and fair picture of the country’s coffers at that point in time.
It was also informed by the auditor-general (A-G) in a closed-door presentation that the accounting records under the Pakatan Harapan administration then had been regularly maintained and updated.
“The auditor-general also informed that the 2018 federal government financial statements have been given a Certificate of Opinion Without Reprimand, with some things needing attention (Emphasis of Matter or EOM),” PAC chairman Wong Kah Woh said in a statement.
He added that among the matters flagged was the diversion of RM3.942 billion from the development allocation and the operating allocation in the form of grants for 11 government-owned companies to repay loans.
“Although the use of the money is not in violation of Section 8 of the Loan Act 1972, the auditor-general felt that the matter does not reflect the correct accounting procedures from an audit perspective.
“Therefore, the auditor-general is of the opinion that if the government wants to channel money to government-owned companies to repay loans, it should be recorded as an “advance or a claimable loan,” Wong said.
He added that the A-G had also stressed the need for attention on investment issues related to Kumpulan Wang Amanah Negara (KWAN), due to accounting deficiencies in terms of auditing.
On the status of the federal government’s debt, Wong said this rose to RM793 billion in 2019 from RM741 billion in the previous year, representing 51.2 per cent and 52.5 per cent as a ratio of the annual gross domestic product, respectively.
“The total federal liability is RM1,080 billion, or equivalent to 71.5 per cent of the liability to GDP ratio.
“A total of 59.9 per cent or RM82,723 billion of total New Loan Receipts amounting to RM138.559 billion has been used for the principal payment for domestic loans. Only 29.7 per cent or RM41.151 billion was used for development expenditure purposes. Such a situation should be fixed,” Wong added.
