PAC flags ‘systemic weaknesses’ in govt procurement practices, says public trust at stake

KUALA LUMPUR, Dec 4 — The Public Accounts Committee (PAC) said today that poor financial management and structural weaknesses remain a major obstacle to Putrajaya’s cost-saving agenda, warning that persistent lapses risk eroding public trust in the administration’s reform efforts.

PAC chair Datuk Mas Ermieyati Samsudin said the auditor-general continues to flag defective procurement practices that have resulted in millions of ringgit in leakages, prompting the committee to issue over a dozen of reminders throughout 2025 urging stricter oversight of contract awards.

Lawmakers passed the Government Procurement Bill 2025 earlier this year as part of the Anwar administration’s push to strengthen tender processes — reforms the PAC stressed must be fully implemented.

“In all PAC took serious note of all the critical findings held in this year’s proceedings,” said Mas Ermieyati, the Masjid Tanah MP from Perikatan Nasional.

“The findings exposed systemic weaknesses in public financial management that involves procurements, project implementation, revenue management and the performance of government-linked companies or government-linked investment companies,” she added.

PAC highlighted five procedural weaknesses frequently cited in every AG reports over the last years: projects awarded without proper contracts, and often carried with no cost benefit analysis. 

Many government projects also fail to meet deadlines and are executed poorly, resulting in ballooning costs, the committee said. It then pointed to constant reports of incompetent management of GLCs, and the slow collection of monies owed to the government.

“These weaknesses are not just administrative, but have broader implications on the government's long term fiscal commitment. Most importantly, it erodes public trust towards the government’s ability to manage every single sen of public money in a transparent and prudent manner,” Mas Ermieyati said.

“We found non-compliance and incompetence to be a consistent feature, raising serious concerns about the risk of leakage, waste at the expense of taxpayers.”