Speaking in the Dewan Rakyat today, he acknowledged the auditor-general’s finding that RM28.13 million was spent without approval on the MyDigital ID project, part of the National Digital Identity (IDN) initiative.
“The ministry acknowledges that expenditures for projects under IDN must be endorsed by the mandated committee, as stipulated in the letter dated Dec 12, 2023.
“The IDN project’s expenditure was presented to both the IDN steering and technical committees in February 2024, and both committees acknowledged the expenditure.
“The following month, the IDN project was handed over to the National Security Council,” he said in winding up the debate on the 2026 Auditor-General’s Report Series 1 today.
Chang attributed the governance weaknesses highlighted in the report to confusion arising from changes to the committees’ structure, which led to “misalignment” in the project’s implementation and decision-making processes.
“Nevertheless, the ministry would like to emphasise that no leakages occurred in (the project’s) management or procurement,” he said.
The report tabled in Parliament yesterday found lapses in the MyDigital ID project’s internal controls, non-compliance with the approved cost structure, and expenditures that were not aligned with the intended purpose.
It 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 was used for resource costs.
Chang acknowledged that development funds should not have been used to cover operational costs under guidelines for projects implemented under the 12th Malaysia Plan.
“MyDigital ID Sdn Bhd, a subsidiary of Mimos at the time, tabled the IDN project’s expenditure, including emoluments and asset procurement, at an IDN technical committee meeting on Sept 6, 2024, which was later confirmed at a meeting on Oct 25, 2024.
“As part of continuous improvement efforts, the ministry will ensure that the management of all future projects is organised and aligned with the given mandate,” he said.
Chang said the company was currently applying for an allocation from the finance ministry to cover operational costs, including emoluments.