Felda tops federal agencies with highest deficit of RM1.01b

Friday 10 May 2024

AG's Report 2022

KUALA LUMPUR (March 6): The Federal Land Development Authority (Felda) has emerged as the federal agency reporting the highest deficit at RM1.01 billion, according to the Auditor General's Report for the year 2022.

The report revealed that Felda's expenditures in 2022 amounted to RM1.947 billion, surpassing its income of RM942 million, which was further offset by an increased impairment of RM742 million, resulting in a current deficit of RM1.005 billion.

The heightened impairment was attributed to the devaluation of investment value by RM380 million, outstanding amounts from subsidiary companies totalling RM193 million, and settler debts of RM147 million.

Meanwhile, four other agencies with the highest deficits in 2022, highlighted in the AG's Report, were the Electric Industry Fund (KWIE), the Railway Assets Corporation (RAC), the National Trust Fund Group (KWAN), and Kuala Lumpur City Hall (DBKL).

KWIE incurred expenses totalling RM1.015 billion, surpassing its income of RM25 million, leading to a current deficit of RM990 million in 2022.

The deficit was due to KWIE not receiving any revenue from excess electricity tariff rebates or charges due to increased fuel costs. Additionally, KWIE's funds were utilised to cover rebate expenses as a mitigation plan to minimise the impact of electricity tariffs on consumers, as reported in the AG's Report.

The RAC reported expenses of RM641 million exceeding income of RM157 million, resulting in a current deficit of RM484 million, due to a decline in revenue from the sale of second-hand goods amounting to RM162 million in 2022.

For KWAN, its expenses in 2022 totalled RM922 million, surpassing income of RM569 million, resulting in a current deficit of RM353 million. This occurred due to expenses related to the acquisition of Covid-19 vaccines amounting to RM896 million.

DBKL, meanwhile, experienced expenses of RM2.792 billion surpassing income of RM2.51 billion, resulting in a current deficit of RM283 million. This was attributed to an increase in service and supply expenses amounting to RM267 million for the maintenance of facilities and public housing, as well as city cleaning.

The AG's Report also indicated that the Employees Provident Fund (EPF) had a surplus income of RM35.72 billion, leading the government agencies with a surplus in 2022, followed by Bank Negara Malaysia (RM6.99 billion), the Public Sector Home Financing Board (LPPSA; RM2.6 billion), Lembaga Tabung Haji (RM1.93 billion), and Bank Rakyat (RM1.8 billion).

Edited ByIsabelle Francis

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