A-G's Report: Five federal agencies recorded deficits of RM3.115bil

PETALING JAYA: Five federal agencies recorded deficits amounting to RM3.115bil, according to the Auditor-General's Report on Federal Agencies 2022.

The five are the Federal Land Development Authority (Felda), the Electric Industry Fund Group (KWIE), the Railway Asset Corporation (RAC), the National Trust Fund Group (KWAN), and Kuala Lumpur City Hall (DBKL).

"Overall, the surplus of the agencies is contributed to by the generation of income from core activities, while the current deficits are caused by a decline in revenue, increased operational expenses, and impairments of investment values, loans, and assets,” said the report, presented in the Dewan Rakyat on Wednesday (March 6).

The report found that Felda's expenditure in 2022 amounted to RM1.947bil.

“The expenditure within Felda exceeded the income of RM0.942bil due to an increase in the impairment of value by RM0.742bil, resulting in a loss of RM1.005bil," it said.

“This situation is partly caused by the impairment of investment value by RM0.380bil, amounts owed by subsidiary companies totaling RM0.193bil, and settler debts amounting to RM0.147bil,” the report added.

It said that KWIE's expenditure was RM1.015bil in 2022, exceeding its income of RM0.025bil and producing a deficit of RM0.990bil.

“This is because KWIE does not receive any revenue from the excess electricity tariff rebates or charges due to increased fuel costs. Additionally, KWIE's funds are used to cover rebate expenses as a mitigation plan to minimise the impact of electricity tariffs on consumers,” it said.

Meanwhile, the RAC's expenditure in 2022 was RM0.641bil, surpassing its income of RM0.157bil, resulting in RM0.484bil of losses.

This is due to a decrease in the sale of used goods by RM0.162bil in 2022.

The report added that KWAN's expenditure in 2022, totalling RM0.922bil, exceeded income of RM0.569bil.

As such, the loss faced by KWAN was RM0.353bil.

“This occurred due to expenses related to the acquisition of Covid-19 vaccines amounting to RM0.896bil," it said.

In 2022, the report said, DBKL spent RM2.792bil, exceeding its income of RM2.509bil and resulting in a loss of RM0.283bil.

The deficit was largely owing to an increase in services and supply expenses of RM0.267bil for the maintenance of public facilities and housing, as well as urban cleaning.