KUALA LUMPUR: The Centre to Combat Corruption and Cronyism (C4 Centre) has called for urgent institutional reform following massive losses in public projects revealed by the Auditor General's Report.
On Nov 22, the report on Activities of Federal Government Ministries/Departments and Federal Statutory Bodies revealed losses amounting to RM681.71 million.
C4 Centre in a statement said these losses were identified in six out of 16 performance audits conducted across 14 ministries, prompting urgent calls for government accountability and institutional reform to avoid wastage of public funds.
The audit further highlighted that 11 out of the 16 projects failed to meet their objectives, with the performance of three remaining uncertain, and only two succeeding in their goals.
"The C4 Centre is appalled at the above revelations and demands that the government takes these findings seriously.
"The Malaysian Anti-Corruption Commission (MACC) must open investigations into these cases in collaboration with the Auditor General's Office to ascertain if corruption had contributed to these losses.
"These revelations further illustrate the urgent necessity for institutional reforms such as the legislation of a Government Procurement Act and establishment of an Ombudsman Office," it said.
Auditor-General Wan Suraya Wan Radzi highlighted that the most significant loss, totalling RM606 million, originated from the Padi Planting Programme.
Other substantial losses were reported in the Langkawi Development Board's (Lada) real estate development programme (RM14.3 million), firearms supervisory and management under the home ministry (RM6.3 million), a marine rehabilitation programme (RM490,000), factory investment incentives (RM300,000), and safe city initiatives (RM120,000).
The C4 Centre said Wan Suraya's statements on the Padi Planting Programme pointed to the government's failure to manage land use and logistics efficiently.
In the case of the Home Ministry's procurement of firearms for the police, losses of approximately RM6.3 million resulted from inadequate follow-up on deliveries since 2014.
"In both cases, the government had failed to implement a continuous and periodic progress reporting system.
"Additionally, the government did not take action despite the failure of the contracted party to supply the contractually required goods and services for an extended period and subsequently did not face any repercussions at the time of audit.
Due to the cases, C4 Centre questioned the existing flaws in Malaysia's public procurement system, emphasising the lack of transparency and legal mechanisms to address non-performance by suppliers.
It cited recent scandals, including the LCS ships fiasco, the delivery of non-functioning ventilators, and the alleged mismanagement of Covid-19 relief funds.
"The common thread between these scandals is that their harm could have been prevented or minimised through the introduction of institutional reforms that narrow the avenue for public officials to be able to exploit the lack of transparent government for their gain.
"With concerns about corruption vulnerabilities in public procurement, the absence of a robust legal framework raises the possibility of public funds being directed into the personal accounts of corrupt officials.
"As the unity government led by Prime Minister Anwar Ibrahim approaches its one-year mark, the C4 Centre urges the prioritisation of promised reforms which was repeatedly touted.
"While acknowledging that many of the listed scandals predate the current administration, the C4 Centre emphasises the need for swift action, especially in light of public dissatisfaction with the country's economic situation.
"Nonetheless, almost exactly a year has passed since the government came into power, and the window of time for the public to extend goodwill towards inaction is surely slimming.
"It is not difficult to see why. The Merdeka Centre recently found that Anwar Ibrahim's approval rating has reduced significantly, with many respondents citing dissatisfaction with Malaysia's stagnating economic situation.
"The current government has made it known that they are working on some of these reforms, including the Procurement Act – nonetheless, we call upon them to expedite the process without any further delay," it said.