KUALA LUMPUR: The government has received a clean-chit in the audit report for the Financial Year ending in 2018.
In addition an Emphasis of Matter (EOM) was also issued following a more transparent disclosure by the government involving its financial statement, said Auditor General Datuk Nik Azman Nik Abdul Majid
An EOM in the audit report indicates a matter which an auditor considers fundamental in understanding the financial statements.
Nik Azman said it was highlighted in the EOM that the government paid RM2.84 billion for guaranteeing loans by five companies under Ministry of Finance Inc.
The five companies, he said, were Kuala Lumpur International Airport (KLIA) Bhd, a subsidiary of KLIA, during the construction of the international airport, Govco Holdings Bhd, Asset Global Network Sdn Bhd, Jambatan Kedua Sdn Bhd and Danainfra Nasional Bhd.
“In 2018, the five companies were unable to repay the loans which resulted in the government settling the debts that reached maturity totaling RM2.839 billion.
“The previous government had settled RM1.753 billion of the (government-guaranteed) loans, while RM1.086 billion was paid by the current government,” he told the reporters at Parliament here today.
The Auditor-General Report outlined six recommendations which would need cooperation at all levels including the federal and departments as well as continuous effective monitoring at ministries must be done to ensure financially-disciplined administration.
Preparation of clear work procedures, understanding and compliance to finance regulations, as well as close supervision on officers would create a practice and work culture with quality and integrity, read the report.
Meanwhile, the Public Accounts Committee (PAC) chairman Datuk Noraini Ahmad said the government should start restricting their guidelines when forming a special purpose vehicle (SPV).