Masjid Tanah candidate for Perikatan Nasional, Datuk Mas Ermieyati Samsudin at the party’s candidates announcement at Mitec in Kuala Lumpur last night. — IZZRAFIQ ALIAS/The Star
THE Public Accounts Committee (PAC) has flagged serious systemic weaknesses in the government’s procurement and management of contracts and public funds, including the failure to conduct cost-benefit analyses for high-impact projects.
PAC chairman Datuk Mas Ermieyati Samsudin said the findings reveal a repeated pattern of non-compliance and inefficiency, raising concerns over potential leakages and wastage that ultimately burden the public.
She said these weaknesses pose significant fiscal risks and undermine public confidence. One major concern is the practice of using government services and systems without formal contracts.
“This not only increases the risk of leakages but also reduces transparency in government decision-making,” she said at a press conference in Parliament yesterday.
Mas Ermieyati also criticised the approval of high-impact projects without cost-benefit analyses.
“Delays and inefficiencies in the execution of important projects have led to wastage of public funds and failures in service delivery. PAC has voiced concern about the sizeable outstanding account receivables, which, if uncollected, affect national revenue,” she added.
The committee further identified weaknesses in the management of government-linked companies (GLCs) and government-linked investment companies, noting that some have failed to generate returns commensurate with the investments made.
“These are not mere technical issues but a direct threat to the country’s financial stability,” she said.
Despite these concerns, Mas Ermieyati acknowledged improvements made by the government in implementing PAC recommendations.
She said the committee has urged stricter compliance with procurement processes, including finalising contracts before project commencement, enforcing cost-benefit analyses, and implementing the Government Procurement Act.
“PAC also recommends that all high-risk projects undergo periodic audits during implementation rather than after project failures, and that coordination among ministries, agencies, and project executors be strengthened to avoid delays and additional costs,” she said.
Mas Ermieyati added that the government must improve revenue collection and address underperforming GLCs, including considering restructuring exercises.
PAC plans to conduct periodic follow-ups with ministries and agencies, she said.
Separately, in its report on the Finance Ministry’s briefing on government procurement and contract administration tabled in the Dewan Rakyat, PAC flagged the use of the proof-of-concept approach in procurement, warning that it could be exploited to bypass standard procedures.
