PETALING JAYA: The Finance Ministry did not impose RM54.51mil in penalties for delayed delivery of concession vehicles to the government, according to the latest Auditor-General's Report.
The report noted that no notice of claim was issued for 6,028 concession vehicles that were delivered up to 508 days late.
It noted that the ministry, as the contract administrator, must ensure that action is taken in collecting the penalties.
The ministry should also expedite the resolution of issues involving the replacement of vehicles with expired lease periods, added the report, released on Monday (Oct 6).
"RM54.51 mil of estimated penalties were not imposed.
"A further RM28.79mil estimated loss was incurred from the use of 5,323 concession vehicles that had exceeded their lease period," it read.
The effective period of the agreement with the concession company, according to the report, is from July 31, 2022 to July 30, 2037.
As of Dec 31 last year, there were 14,459 concession vehicles in the government.
Between 2021 and 2024, RM1.75bil in total payments were made for rental, repairs and maintenance of concession vehicles, the report noted.
