Strengthening Public Accountability After the 2025 Auditor General’s Report

The 2025 Auditor General’s Report (Series 2) has unearthed a host of serious irregularities and governance failures, thereby creating a cascade of new concerns after scrutinising five audits across seven ministries. These involved programmes and projects worth approximately RM48.873 billion.

According to reports, between 2012 and January 2025, a total of 12,393 audits were conducted. Of these, 11,594 cases (93.7%) have been addressed, with a further 799 still under follow-up. Of particular concern are 286 issues still under investigation — 138 by the Malaysian Anti-Corruption Commission (MACC), 116 by the Public Service Department (JPA) through internal disciplinary probes, and 32 by the Royal Malaysian Police (PDRM).

One striking example occurred in February 2025, when auditors found that RM392.95 million in the Muda Agricultural Development Authority (MADA)’s accounts could not be verified. This was attributed to manual adjustments made outside the Standard Accounting System for Government Agencies, adjustments that could not themselves be substantiated.

The Consumers’ Association of Penang (CAP) is deeply concerned about the large number of government-linked companies (GLCs), totalling 1,875, that were flagged in the report for public fund leakages. Although these entities are required to return misappropriated funds, CAP urges that stricter financial controls be imposed to prevent future misuse.

Given the recent amendments to the Audit Act 1957 and the Auditor General’s expanded powers, CAP acknowledges the government’s efforts to strengthen oversight and accountability. However, we stress that legislative change alone is not enough. It is crucial that the Auditor General’s new powers are fully exercised, particularly in monitoring recurring irregularities and ensuring timely enforcement. The introduction of digital self-audit systems and the ability to audit all recipients of public funds, including GLCs, are encouraging developments, but their success depends on robust implementation and sustained political will.

CAP looks forward to improved fiscal governance across all bodies under the Auditor General’s purview. We are hopeful that the new self-audit system will significantly enhance the performance and accountability of GLCs. Equally important is the continued recovery of misused or uncollected funds; since the amendment, RM123 million has reportedly been reclaimed — an encouraging sign that enforcement is taking effect.

Mohideen Abdul Kader
President
Consumers Association of Penang (CAP)

Letter to the Editor, 4 August 2025