MyDigital ID audit flags RM28.13mil in unapproved spending

MyDigital ID audit flags RM28.13mil in unapproved spending

The 2026 Auditor-General’s Report Series 1 identifies weaknesses in expenditure management during the early stages of the MyDigital ID project under Mimos Bhd.

mydigital id
MyDigital ID is a national digital identification initiative aimed at providing a secure and authenticated method for verifying identities online. (Bernama pic)
PETALING JAYA:
An audit has revealed that RM28.13 million was spent without approval for the MyDigital ID project, highlighting serious governance and financial control weaknesses during its early implementation.

MyDigital ID serves as a digital self-identification and authentication tool for individuals, designed for use across public and private sectors to verify user identities in online transactions.

The 2026 Auditor-General’s Report Series 1 tabled in the Dewan Rakyat today found lapses in the project’s internal controls, non-compliance with the approved cost structure, and expenditures that were not aligned with the intended purpose.

The report revealed that RM14.09 million of the project’s operating expenditure was derived from allocations meant for development. Of that amount, RM13.10 million, or 93%, was spent on emoluments, while RM0.85 million went towards resource costs.

In addition, RM4.08 million was spent in excess of allocated disbursements across 11 project sub-scopes. One of these sub-scopes exceeded the approved cost by RM70,000.

“Overall, the project demonstrated weaknesses in expenditure management and internal controls during the early implementation phase under Mimos Bhd’s management,” said the report.

It added that certain equipment procurement was carried out without approval and was not utilised, resulting in wastage.

The audit stressed that Mimos must exercise fiduciary responsibility to ensure proper governance and adherence to internal controls to safeguard the project’s best interests.

It recommended that Mimos strengthen oversight by ensuring all expenditure receives proper approval and complies with the approved cost structure.

The government appointed Mimos as the implementing agency for the MyDigital ID programme, with an initial allocation of RM80 million, in 2023.

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