AG's Report: 10 federal agencies recorded highest loan balances in 2022

KUALA LUMPUR: Ten federal agencies reported loan balances amounting to RM122.388 billion for the year 2022.

According to the Auditor General's Analysis of Financial Statements of Federal Agencies for the year 2022, the amount represented 99.4 per cent of the RM123.137 billion of the loan balances of 24 federal agencies during the year.

The federal agencies with the highest loan balances included the Public Sector Home Financing Board (LPPSA) at RM62.083 billion followed by the National Higher Education Fund Corporation (PTPTN) at RM41.500 billion, the Federal Land Development Authority (Felda) at RM8.569 billion, PR1MA Corporation Malaysia (PR1MA) at RM3.792 billion and Port Klang Authority (LPK) at RM3.465 billion.

Also included on the list are the Malaysian Highway Authority (LLM), the Social Security Organisation (Perkeso), the Malaysian Timber Industry Board (MTIB), the Railway Asset Corporation (RAC) and Bank Simpanan Nasional.

Of the total, four of the federal agencies — LPK, LLM, Felda and RAC— recorded RM5.338 billion in loan balances from the Federal Government.

"Audit analysis conducted also found that three federal agencies had made new borrowings amounting to RM10.708 billion from financial institutions in 2022."

The report said the agencies that made the new borrowings were LPPSA, PTPTN and Perkeso.

"The audit analysis found that two of the three federal agencies made the new borrowings for the purpose of settling repayments of loans, that have reached their maturity dates."

It said this situation would expose them to the risk of increasing their commitments, which would impact their capability to settle the loans.

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