PUTRAJAYA – The National Audit Department (NAD) is pushing for greater transparency, accountability, and effectiveness in carrying out its duties to ensure the highest standards of good governance in the agency and across all government bodies, said Auditor-General (A-G) Datuk Wan Suraya Wan Mohd Radzi.
This assurance comes after recent strides taken by the NAD to strengthen its internal practices and enhance its collaboration with stakeholders.
“Building upon the strong foundation laid by the previous leadership, I am committed to leading the NAD towards a future characterised by even greater transparency, accountability, and effectiveness,” Wan Suraya told Scoop, stressing the importance of open communication and collaboration.
“While some of the changes we are implementing may require adjustments, my team and I are firmly committed to addressing any concerns constructively and remaining focused on fulfilling our core responsibilities.”
The A-G has also expressed her gratitude for the unwavering support and commitment of the NAD’s officers, noting that “together, we strive to continuously improve our practices and deliver the highest quality audit services.”
The recent A-G Report, which was presented to Parliament yesterday, highlights the need for federal agencies to adopt a strategic approach to resource allocation in order to maximise the potential benefits for the nation.
“By focusing on meticulous planning, government agencies can ensure that grants are utilised effectively, leading to increased return on investment and ultimately contributing to stronger public finances,” Wan Suraya explained.
This is also aligned with the broader principles of good governance, stressing the importance of transparency, accountability, and prudent resource management as outlined in the Malaysia Madani policy framework.
Wan Suraya also highlighted the importance of taking proactive measures to address recurring issues in specific agencies.
In addition, the NAD has implemented new initiatives to promote a deeper understanding of audit processes among industry players and stakeholders.
These include the organising of specialised training courses, such as the recent programme for Islamic state departments and another session for local administrations in collaboration with the Local Government Development Ministry.
NAD has also organised briefing sessions to provide comprehensive information on audit standards and regulations, fostering interactive dialogue with stakeholders.
“We aim to go beyond simply identifying shortcomings,” she said. “By offering guidance and training, we hope to empower agencies to address underlying issues and prevent future occurrences.”
Transparency through the A-G’s dashboard
The A-G’s online dashboard serves as a platform to share audit findings, public feedback, and follow-up actions taken by agencies. The dashboard is very active and will be even more active in the future.
“This dashboard fosters transparency and accountability. It allows the public to monitor progress made on follow-up actions, ensuring that issues raised in the report are addressed effectively,” she said.
“It (the dashboard) is a tool for good governance. Once something is recorded on it, we have to make sure that there are updates (on issues raised in the A-G report) to negate the perception that we don’t follow through with matters.”
According to the 2022 A-G’s Report tabled yesterday, the total liabilities of 130 federal agencies in 2022 reached RM903.613 billion, indicating an increase of RM119.896 billion (15.3%) from the 2021 figure of RM783.717 billion.
The audit analysis for the year ending December 31, 2022, reveals that 24 federal agencies carry outstanding loans totaling RM123.137 billion. Among these, 10 agencies have the highest loan balance, amounting to RM122.388 billion (99.4%), constituting a significant portion of the total loan value.
The report notes that 50 federal agencies reported a current deficit of RM4.570 billion, while 80 agencies recorded a surplus of RM54.677 billion. The combined asset position of the 130 federal agencies stands at RM2,491.931 billion, marking an increase of RM82.861 billion (3.4%), compared to the 2021 asset position of RM2,409.070 billion.
Simultaneously, 86 federal agencies received operational and development grants totaling RM27.034 billion from Putrajaya. Among them, 83 agencies have accumulated unamortised development grants amounting to RM25.535 billion.
In the realm of investments, 53 federal agencies have invested RM56.128 billion in 234 subsidiary companies, with 212 remaining active and 22 classified as dormant. Out of these subsidiaries, 121 companies reported net profits, while 91 incurred losses. Notably, 66 out of the 212 subsidiary companies paid dividends to federal agencies, totaling RM1.910 billion.
Wan Suraya recommended federal agencies to adhere to loan repayment schedules to alleviate the government’s financial burden. Additionally, timely presentation of financial statements for auditing, along with responsible spending of grants within the designated financial year, is emphasised.
The report also underscores the need for a re-evaluation of dormant subsidiary companies, recognising their potential strain on the federal government’s finances. – March 7, 2024