PETALING JAYA: A total of 27 administrative offices of highway concessionaires collected RM3.27mil in rentals even before lease agreements were formally signed, says The Auditor-General's Report Series 3/2025.
The audit, released on Monday (Oct 6), examined the management of lease collections involving 136 administrative offices under 27 concession companies operating 33 highways across the peninsula.
It found that whilst some revenue was channelled to the Consolidated Fund, serious lapses remained in the enforcement of lease arrangements.
As of Dec 31, 2024, only 34 offices had proper lease agreements in place, contributing RM211,000 in rentals.
However, 96 offices were still operating without signed agreements, leading to an estimated RM96,000 in unrealised collections.
In another six cases, no rentals were imposed as the concession contracts did not include lease clauses.
The Auditor-General recommended that the Works Ministry and the Highway Authority ensure concessionaires promptly submit land ownership applications to facilitate the signing of agreements.
It also urged closer coordination with the Department of the Director-General of Lands and Mines and district land offices to speed up approvals, whilst calling for supplementary concession agreements, particularly for the Kesas Highway, to be expedited.
The findings underscore continuing gaps in governance, where millions in rentals have been collected without the necessary agreements, leaving room for financial risks and weakened oversight.
