KUALA LUMPUR (Oct 6): The auditor general has criticised the federal government for poor management of the government vehicle fleet, highlighting delays in deliveries and a failure to enforce penalties.
According to the latest report, penalties worth about RM54.51 million were not imposed on the concessionaire, even though 6,028 vehicles were delivered late — some by up to 508 days. This happened despite the contract clearly allowing penalties for such delays.
The Auditor General’s Report did not name the concessionaire, but the Ministry of Finance (MOF) in a parliamentary reply last year stated that Spanco Sdn Bhd currently manages the government’s vehicle fleet.
Spanco signed a new 15-year concession with the MOF on Jan 31, 2022 to manage government vehicles. It began on July 31, 2022, and runs until July 30, 2037. This replaces the earlier agreement, which expired in 2018 but was extended four times until July 2022.
Under the agreement between the concessionaire and the MOF, Clause 11.2 stipulates that vehicles must be delivered within 60 working days from the order date, with penalties to be imposed for delays caused by the company.
Clause 11.4 also requires the concessionaire to inform the government within 30 working days if it cannot meet the delivery schedule, allowing both parties to discuss appropriate action.
However, an audit analysis of the concessionaire’s vehicle management system showed that as of Dec 31, 2024, none of the delayed deliveries had been subject to penalty claims.
The auditor general also found that the government overspent RM28.79 million by continuing to use 5,323 leased vehicles after their contracts expired, instead of replacing them as scheduled. From 2021 to 2024, RM123.43 million was spent, though only RM94.64 million would have been needed with timely replacements.
The report said that based on responses from the MOF, a penalty committee and penalty assessment working committee had been formed to review and determine appropriate claims to be submitted by the ministries involved.
“The penalty committee, chaired by the deputy secretary general of the Treasury (investment), comprises representatives of various divisions within the ministry as well as the Accountant General’s Department,” the report said.
The MOF also held an engagement session with all ministries on Aug 18 to present the audit findings and outline follow-up actions.
The auditor general recommended that the ministry, as the contract administrator, take action to recover the estimated RM54.51 million in penalties and expedite the resolution of issues related to replacing vehicles with expired leases.
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