MACC special task force to investigate latest A-G’s Report

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KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) will be setting up a task force to look into the findings of the 2016 Auditor-General’s Report, which was presented to the Dewan Rakyat yesterday.

MACC chief commissioner Dzulkifli Ahmad said he had discovered issues with the report after reading it, and that the findings needed to be scrutinised by the anti-graft agency so that appropriate action could be taken.

“We have discovered some issues with the report. We will release a press statement on the specific issues.

“We will also be forming a task force to take action if necessary,” he told reporters during a press conference here today.

Dzulkifli said the task force would investigate if there was any corruption involved in the issues highlighted in the audit report on the federal and state governments as well as government-linked agencies last year.

Among the issues in this latest report, two items reported earlier today involved discrepancies in procedures and payments concerning a corporate entity under the Sarawak state housing ministry and the purchase of a hotel by a Melaka state agency.

In the first instance, the A-G found that the Sarawak Housing Development Corporation (Perbadanan) had paid RM2.88 million to two contractors for the repainting of 12 public housing units, even though they had not carried out the work.

The A-G added that Perbadanan had not abided by provisions of the Financial Procedure Act and other procurement rules for an upgrading project in Sibu with payments made in advance without the necessary authorisation.

The other item showed how the Melaka State Development Corporation’s (PKNM) decision to buy back a hotel it had sold 13 years earlier led to losses amounting to RM4.57 million.

According to the report, PKNM was forced to buy back MITC Hotel in Ayer Keroh after the company to which it had sold it to failed to make the payments due to the state government and continued to accumulate debts over the next 11 years.

The purchase of the hotel was then done through a RM25.70 million bank loan to finance the purchase (RM17 million), refurbishment (RM7.56 million) and GST (RM1.14 million).

“The total repayment of the loan is RM50.70 million, including RM25 million in interest,” the audit report said.

It is not confirmed however if these are among the issues which the MACC task force will be looking into.

A-G’s Report: RM2.88 million paid for non-existent paint job

A-G’s Report: Melaka govt lost RM4.6 million in hotel venture