PETALING JAYA: A total of RM3.27mil was collected in rent from 27 administrative offices across 10 highways by the Malaysian Highway Authority (LLM) – before lease agreements were signed.
However, the LLM had no legal authority to collect the rentals, the Auditor-General’s Report says.
The report said not having lease agreements was a weakness on the part of the Works Ministry.
It said the ministry has to expedite additional concession agreements, particularly for the Kesas Highway, to ensure that lease rent is collected legally.
The Series 3/2025 looked at how lease payments were managed in 136 offices run by 27 concessionaires on 33 highways in the peninsula and found serious lapses with enforcing lease agreements.
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, resulting in 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 Malaysian Highway Authority ensure concessionaires promptly submit land ownership applications to facilitate the signing of agreements.
It urged closer coordination with the director-general of the Lands and Mines Department and district land offices to speed up approvals.
