KUALA LUMPUR, Feb 23 — Universiti Kebangsaan Malaysia (UKM) has been found to face serious irregularities and governance breaches in its student fee collection and spending, failing to comply with legal and financial regulations.

The Auditor General’s Report (LKAN) 1/2026 on the 2024 Federal Agencies’ Financial Statements found that an unauthorised body, Koperasi B-5-1788, collected student fees totalling RM50.74 million, including RM3.53 million for the Master of Education (SPEND) and RM47.21 million for the Postgraduate Diploma in Education (DPLI).

“The cooperation agreements for SPEND and DPLI are invalid as they lacked Finance Minister approval, as required under the UKM Constitution,” according to the report tabled in the Dewan Rakyat today.

In addition, RM32.36 million in student fees distributed to Koperasi B-5-1788, including RM0.87 million received by UKM via the Employees Provident Fund (EPF), the National Higher Education Fund Corporation (PTPTN), and eKewangan (UKM’s payment platform), was not recorded as UKM’s revenue.

The report said RM21.02 million in SPEND and DPLI fees collected by Koperasi B-5-1788 were handed to UKM 31 to 291 days late.

In addition, RM5.32 million in student fees had yet to be submitted to UKM as of Dec 31, 2024, and were delayed between one and over three years.

The audit also found conflicts of interest: five UKM officers held key roles at Koperasi B-5-1788, including the chairman, secretary, treasurer, and board members.

“The officers’ involvement in daily operations conflicts with UKM’s interests and goes against their roles as statutory body officers under Act 605,” the report said.

The audit also found irregular spending: RM5.94 million in commissions to ineligible agents, RM107,907 in overseas expenses for six non-UKM individuals, and RM35,000 in industrial attachment allowances for ineligible students.

The report recommended that UKM monitor all SPEND and DPLI fees collected by Koperasi B-5-1788 to ensure timely submission per contract, and called for action to recover outstanding student fees that have yet to be transferred to UKM.

It also urged UKM to review existing and future cooperation agreements on student fees, ensuring they fully comply with the UKM Constitution, which governs the university’s powers and functions. — Bernama