PETALING JAYA: The recurring loss of millions of ringgit in public funds due to leakages is not just financial wastage but a serious breach of trust that deprives the rakyat of essential services, says Tan Sri Lee Lam Thye.
The Malaysia Integrity Institute member said he was deeply concerned over the recent Auditor-General’s Report (AG’s Report) 2026/1 highlighting the millions lost to such inefficiencies, adding that immediate and decisive action must be taken to stop the rot.
"Every ringgit lost could have been used to uplift vulnerable communities and strengthen national development in areas such as healthcare, education, infrastructure, and social protection," he said in a statement on Tuesday (Feb 24).
Lee identified five key factors contributing to the losses: weak internal controls and oversight, lack of transparency in procurement, poor project management, corruption, and fragmented enforcement where audit findings are often not acted upon promptly.
"Ineffective supervision and accountability lead to cost overruns, delays, and abandoned projects, while opaque contract awards through non-competitive tenders increase the risk of inflated costs and favouritism," he said.
To address the issue once and for all, Lee outlined a six-point strategy for systemic reform, starting with strengthening governance and integrity systems across all ministries and government-linked entities.
He called for the expansion of open tender systems and the publication of detailed information on government contracts and project costs for public scrutiny.
"Investigative agencies such as the Malaysian Anti-Corruption Commission (MACC) must be empowered to act without fear or favour, and cases involving public funds must be fast-tracked in court," he added.
Lee also urged the government to strengthen the role of the Public Accounts Committee (PAC) to ensure audit findings are debated and corrective measures implemented promptly.
He suggested adopting technology-driven monitoring systems to track project implementation in real-time and providing adequate legal protection for whistleblowers who expose wrongdoing.
"Leakages not only weaken our economy but also erode confidence in institutions. The government must send a clear and uncompromising message that public funds are sacred and that any form of wastage, negligence, or corruption will not be tolerated.
"This issue must be addressed decisively and comprehensively. Half-measures will only perpetuate the cycle of loss. It is time to plug the leaks – permanently," he said.
The AG’s Report flagged RM183.11mil in unreturned research grant balances involving 7,904 projects across four ministries.
The first series of the AG’s Report this year mentioned that the figure mostly consisted of 7,823 projects involving RM110.67mil of unreturned research grants from the Higher Education Ministry.
This was followed by a total of RM55.64 mil in unreturned research grants involving 60 projects at the Investment, Trade and Industry Ministry (MITI), while Science, Technology and Innovation Ministry (Mosti) has 19 projects with unreturned grants amounting to RM14.33mil.
The Agriculture and Food Security Ministry (KPKM), meanwhile, has two projects involving unreturned research grants amounting to RM2.47mil.
