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Wednesday March 5, 2014 MYT 12:00:00 AM
Wednesday March 5, 2014 MYT 2:04:02 PM
by r.s.n. murali
MALACCA: Several state government agencies are being probed for mismanagement because they have racked up losses amounting to about RM360mil in total.
The shocking financial status of these agencies was discovered a month or so after a reshuffling exercise on Jan 1 had 18 senior officials in the organisations replaced.
Among the reasons for the losses are oversights in debt collection, excessive spending, improper financial and procurement planning, and cost overruns when awarding contracts.
Chief Minister Datuk Seri Idris Haron confirmed the agencies were facing a financial crisis. These agencies were supposed to be the state government’s cash cows.
Yayasan Melaka, a foundation formed to provide quality education to all Malaysians, is hardest hit with RM286mil in debts.
Next is Malacca Development Corporation, entangled with close to a RM50mil deficit.
The Hang Tuah Jaya Muncipal Council, formed in January 2010, is also mired in bad debts amounting to about RM25mil.
Malacca International Trade Centre has a fiscal deficit amounting to millions after a slew of government agencies failed to settle rental fees for its elevated multipurpose hall in Ayer Keroh.
It was also learnt that more state agencies may be reporting financial losses at a meeting called by the Chief Minister’s office that will take place after the state legislative assembly ends tomorrow.
Idris said a recovery mechanism had been put in place to recover the losses.
“I am confident of restoring the situation and steering these agencies into revenue-generating ones.
“Give the state government some time to recuperate these ailing agencies; we are optimistic of achieving this through diligent planning.”
The agencies had failed to submit in-depth financial reports citing the losses.
Idris said the reshuffle of officials had been made to enhance the performance of these agencies which were to complement the state government in its second phase of turning Malacca into a developed state.
It is believed that the Malaysian Anti-Corruption Commission has been alerted but MACC officials could not be reached for comment.
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