KUALA LUMPUR (Oct 6): The latest Auditor General’s Report highlights serious weaknesses in payment controls at the Malaysian Maritime Enforcement Agency (APMM), alongside concerns over its reliance on ageing vessels.
The audit found that the APMM paid RM32.34 million in claims without supplier invoices, RM59,800 for equipment that was never supplied, and RM144,536 for items that didn’t meet specifications.
Additionally, important technical tests — the harbour acceptance test (HAT) and sea acceptance test (SAT) — before accepting vessels were skipped, leading to warranty repairs costing RM173,075.
In 2024, the APMM spent RM229.93 million on vessels over 30 years old and RM78 million on boats aged 11 to 20 years, raising risks in functionality and costs.
The report also found phased refit works without proper planning added RM8.88 million in extra costs, and RM2.27 million in late penalties remained uncollected from contractors who missed deadlines.
To address the weaknesses, the audit recommended that the APMM:
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Plan and coordinate vessel maintenance more effectively to optimise budget use and avoid cost increases from phased works;
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Ensure late penalties are collected, supplier invoices are attached to all claims, and standard pricing schedules are established to prevent overcharging; and
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Approve payments for vessel maintenance only after the HAT and SAT are completed, in line with engineering best practices and asset acceptance procedures.
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