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Railway’s losses at end of 2018 totalled almost RM3 billion

By the ned of 2018 KTMB had accumulated losses of close to RM3 billion.

Syndicated News
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Salient points in Auditor-General’s 2018 report Series 2:

KUALA LUMPUR — Dec. 2, 2019: The Auditor-General’s Report 2018 Series 2 released today disclosed findings on weak financial management that needs to be improved among ministries, government agencies and federal government companies.    

Among the salient points are (edited by The Mole due to length):

  • Accumulated losses of Keretapi Tanah Melayu Berhad (KTMB) as at December 31, 2018, totalled RM2.829 billion.
  • The audit on the compliance of grant management showed that the remainder of grants amounting to RM83.67 million for 67 completed development projects and programmes had not been returned to the Treasury.
  • Of the 47 Minister of Finance (Incorporated) companies evaluated based on the audited financial statements, only four were financially sound, 33 stable and 10 unstable.​​​​​​ Financially sound companies were Petronas, Prokhas Sdn. Bhd., MyCreative Ventures Sdn. Bhd. and Syarikat Jaminan Kredit Perumahan Berhad.
  • Weaknesses and inefficiencies in the organisation of Kuala Lumpur Games 2017 (KL Games 2017) in terms of procurement, preparation and delays in signing contracts, and control of ticket sales as well as expenses that did not comply with financial regulations. 
  • Affordable home ownership scheme MyHome had been poorly managed, resulting in delays in project completion, incentive payments to dubious developers and incentives to buyers that had not yet been returned by developers. 
  • Two projects — namely geothermal power plant in Sabah and University Perdana in Seri Kembangan with financial support from Dana Mudahcara involving Unit Kerjasama Awam Swasta amounting to RM248 million failed to materialise. Almost 90 per cent or RM191 million of the total funds had been withdrawn for the university. 
  • An overdue debt amounting to RM107.1 million with regards to tourism advertisements since three years ago was still unpaid. A

Auditor-General Datuk Nik Azman Nik Abdul Majid said in a statement that as of last August 30, the National Audit Department had conducted the audit of financial statements of 113 federal government agencies for the financial year 2018.

Of the total, 99 financial statements were given advice without reprimand, six with advice without reprimand with emphasis of matter and eight were given advice with reprimand.

Another 35 financial statements had not yet been finalised while two agencies had yet submitted their financial statements. 

Besides that, 12 performance audits were carried out at the federal government level and 21 at the state level, comprising various fields, including programmes/activities management, maintenance and revenue management. 

NAD also had conducted seven management audits on government companies at the federal government level and nine at the state level.

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