[UPDATED] A-G’s Report: PAC to quiz Finance Ministry on Lada issues

KUALA LUMPUR – Parliament’s Public Accounts Committee (PAC) has summoned the Finance Ministry to provide testimony on issues uncovered by the Auditor-General’s (AG) Report 2022 (Volume 1) regarding the Langkawi Development Authority (Lada).

Addressing a press conference at Parliament today, PAC chair Datuk Mas Ermieyati Samsudin (Masjid Tanah-PN) said a representative from the ministry is required to attend committee proceedings on November 30.

Mas Ermieyati, however, did not mention who will be representing the ministry helmed by Prime Minister Datuk Seri Anwar Ibrahim (Tambun-PH) during the proceedings.

“For PAC proceedings on issues raised in the A-G Report 2022, the committee will be focusing on topics that are found to have elements of misconduct, abuse of power, leakages, and negligence. 

“As such, PAC has decided to call the Finance Ministry to provide its explanation on Lada’s management next Thursday (November 30).”

She added that the PAC will keep the public updated on other matters that will be addressed in its proceedings. 

Some of the highlights in the A-G report on Lada’s poor management detailed the federal authority’s failure to collect land lease revenue for two projects – the development of the St Regis Hotel, amounting to RM3.19 million since 2018 and the land lease for the Tok Senik village resort project, amounting to RM8.3 million since 2013. 

According to the report, the failure to collect the revenue from the St Regis Hotel project up to December 31, 2022, could see Lada risk the loss of revenue estimated at RM11.49 million as well as the loss of the land lease.

The report also highlighted that there were no returns on investment for Lada, either in terms of shareholding or land lease revenue amounting to RM8.3 million from the Tok Senik project as well.

Overall, the report, which was tabled in the Dewan Rakyat today, stated that Lada has yet to achieve satisfactory performance due to a number of its private investment and development projects being unable to be completed within the set period. 

Failure to reach its targeted revenue and weaknesses in the management of land leases also exposed the authority to the risk of property loss. 

According to the report, Lada’s response, which was received on July 17, stated that four of the six projects identified as being behind schedule were due to the implementation of the movement control order, contractor issues at the project site and a delay in receiving the supply of construction materials. – November 22, 2023