True extent of losses vastly bigger, demands greater concern, says former auditor-general

KUALA LUMPUR: The recent 2026 Auditor-General’s report which revealed that there were 273 new cases of financial mismanagement, is only the “tip of the iceberg”, according to former auditor-general Tan Sri Ambrin Buang (pic).

He told theSun, in an exclusive interview, that the AG report, which is also facilitating RM316.

68 million in government recoveries, only randomly covered a small fraction of the multitude of programmes and projects handled by the government.

“Since the report is based on a very limited sample, the true extent of such losses is vastly bigger and should be of much concern to those tasked with handling public money.

“While the nature of such weaknesses looks familiar and keep recurring, the auditees are different each year,” said Ambrin, who was in charge of the National Audit Department from 2006 to 2017.

Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi said the report, tabled in the Dewan Rakyat, spans 15 volumes and covers the 2024 financial statements of federal agencies.

It also audits the activities of federal and state ministries, departments and statutory bodies.

When asked what should be done to counter the issue of financial mismanagment, Ambrin said mismanagement is mainly due to irresponsible officers not adhering to established rules and regulations, as specified in the Treasury Instructions or the SOP.

“This may be due to their ignorance or negligence, which would reflect on their competency, or their motive for self-gratification in collaborating with other parties to commit fraud, false claims, falsification of data and documents, or bid-rigging.

”He added that the Controlling Officer of each ministry, department or agency, is responsible or authorised to oversee the approval of allocations and spending.

“The respective Controlling Officers must not act beyond their authority limits as specified in the various financial circulars issued by the Treasury.

“Prior written approvals should be obtained from the Treasury for any exemptions from any government financial rules and procedures, such as in exceeding their original allocation or procurement method.

”He also said most ministries, departments or agencies have their own internal audit divisions, which should regularly check the work of their financial and development division, and send reports to their respective audit committees.

When asked if action should be taken against all the agencies and bodies mentioned for financial mismanagment in the report, Ambrin said secretary-generals of ministries, director-generals of departments and agencies are duty-bound to promptly respond to issues highlighted by the auditor-general by taking corrective actions for non-compliance with current financial laws and regulations.

“Acts of gross negligence or fraudulent practices are voluntarily reported to enforcement agencies such as the Public Service Department, the Malaysian Anti-Corruption Commission or the police, requesting a full and independent investigation before taking appropriate disciplinary or criminal action.

“By prompt action, I mean they should not wait until the AG tables a report to Parliament before taking action, which would be several months after the audit report is finalised following the exit conference arranged by the AG.

“This way, they could demonstrate that they are taking the audit issues seriously by taking remedial actions even before media exposure.

“Also, their audit committee must promptly discuss the issues to determine a timeline for weaknesses to be rectified, and identify (a responsible party) and report to the AG.

”Ambrin said the report would always highlight weaknesses in the public sector financial management, whether in terms of revenue collection or expenditure on government programmes and projects.

“It would normally expose cases of negligence or inefficiency, as well as misappropriation of public funds and leakages such as extravagant or wasteful spending, which has caused financial and reputational losses to the government as well as public outcry.

“More importantly, there is an immediate need to reduce and stop such losses.

“The money should be directly chanelled to build better infrastructure, enchanced healthcare and improved education for the benefit of Malaysians.

”Ambrin said in 2018, he was appointed as the Chairman of the Special Committee on Procurement, Governance and Finance, which is tasked with investigating and improving government processes, particularly public procurement and administrative procedures.

He added that this role in public procurement was as difficult as his previous role as Auditor-General, as the public sector’s purchase of goods and services which make up over than RM60 billion each year.

Currently, Ambrin is the chairman of Gamuda Berhad (appointed on Feb 1, 2023) and a member of the Selangor Royal Council.

 The Sun Malaysia