MACC deputy chief commissioner (prevention) Azmi Kamaruzaman said these weaknesses were uncovered following checks of various agreements between DBKL and companies appointed to manage projects and services under the local government.

He pointed to one agreement with a company tasked with monitoring and managing various business licences issued by DBKL.

“That agreement had various weaknesses in governance practices and systems. The most apparent one is that no panel was appointed to monitor the execution of services and the performance of the contractor,” he said, according to Berita Harian.

Azmi said this could allow corruption and the misappropriation of funds to take place, and that plugging such loopholes was crucial to curbing graft.

“Such a situation should never have happened in a large and influential public institution like DBKL,” he said, adding that there were “many” corruption cases probed by MACC that involved the local council.

The graft-busters launched several high-profile investigations into DBKL last year, including one which led to its executive director for project management being charged in court.

Separately, MACC said it had proposed that DBKL execute 20 steps to bolster governance and close loopholes in its systems, Bernama reported.

The anti-graft agency said it had identified five key governance issues in DBKL, including the collection of rent for public housing projects and the management of Ramadan bazaar sites.

The other issues involved the management of a broadcast production project and a sports competition among Malaysian statutory bodies.

MACC did not detail the measures recommended but said they involved improvements to the management and monitoring of contracts involving various business licences.