Ministry to audit two MCMC funds

Communications and Multimedia Minister Gobind Singh Deo says the audit is to corroborate the amount in the accounts.

PUTRAJAYA: The Ministry of Communications and Multimedia will conduct an audit on two Malaysian Communications and Multimedia Commission (MCMC) fund groups following enquiries regarding their management.

Its minister Gobind Singh Deo revealed the two funds as MCMC Fund, established under the Communications and Multimedia Act 1998, and the Universal Service Provision (USP) Fund, established under the Communications and Multimedia (Universal Service Provision) Regulations 2002.

According to him, the financial statement of the MCMC Fund showed that it had RM800 million in its coffers as at Dec 31, 2016, while that of USP Fund showed an amount of RM8.5 billion in the same fiscal period.

“The audit on the two funds is to corroborate the amount in the accounts and enhance transparency in the utilisation of the funds,” he told a media conference after attending a post-cabinet meeting at his ministry here today.

He said he would duly provide more information as to who would conduct the audit; when it would be done; and how long it would take.

Gobind said the ministry would hold discussions with the National Audit Department and MCMC on the laws that could be applied for the audit in accordance with the relevant act.

“Personally, I think it would be done by the Audit Department, independent parties or former auditor-general Amrin Buang who heads the Governance, Procurement and Finance Committee,” he said.

Although the two funds were audited annually, he said there had been many queries, warranting the ministry to call for an independent audit to make verifications.

He said the MCMC Fund was created for MCMC’s financial requirements as stipulated in the Communications and Multimedia Act 1998, while the USP Fund was for the purpose of narrowing the digital divide in rural and isolated areas through providing communication and internet access where the services were limited.

“Telecommunication companies are obliged to contribute a percentage of their turnover this year to the funds managed by MCMC,” he said.

The minister expects weaknesses, should there be any, in the utilisation of both funds as well as in the process of awarding and implementing projects under the funds, to be divulged in the outcome of the audit.