This article first appeared in The Edge Malaysia Weekly on July 8, 2024 - July 14, 2024
Mismanagement of public funds and resources has always made the headlines during the release of the Auditor-General’s (AG) Report. This year’s report, released last week, highlighted more bad news coming from companies and projects funded by taxpayers’ money.
The Mass Rapid Transit Line 1 (MRT1) and MRT2, for example, have failed to meet their targets for daily ridership, the number of trains in operation as well as peak-hour frequency. From 2017 to 2023, MRT1 recorded an average daily passenger rate of only 10.8% to 37.4% of the targeted numbers. For MRT2, the average daily passenger rates were 20% and 45.6% for 2022 and 2023 respectively.
Mass Rapid Transit Corp Sdn Bhd also reported an increase in accumulated losses to RM57.624 billion, up RM85.4 million from 2022, which were financed by the government’s contribution to the cost of building rail assets.
The AG’s Report also flagged Mara Inc Sdn Bhd’s ineffective execution of property management activities, resulting in its incurring accumulated losses of RM286.3 million. For the same reason, no dividend has been paid to its shareholders in the past decade.
Elsewhere, the River of Life programme has seen little progress in achieving its objectives after the government spent nearly RM4 billion in the past 13 years.
Reviews should be undertaken periodically to address the weaknesses highlighted in the AG’s Report. Perhaps the decision to debate the report could receive more constructive recommendations and suggestions to better manage the country’s resources.
The government has become more aggressive in its fiscal consolidation efforts through the subsidy rationalisation exercise, but this move should not be offset by irresponsible management.
Ultimately, governance must be further enhanced in the use of public funds for the benefit of all Malaysians.
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