PETALING JAYA: The Auditor-General’s Report (AG’s Report) 1/2026 revealed several significant weaknesses in the management and expenditure of the MyDigital ID Development Project (MyDID Project) under Mimos Bhd.
The report said the audit, which covered the period from July 2023 to March 2025, examined RM28.13mil spent from the first RM80mil allocation for the project.
Mimos had transferred the first disbursement of RM80mil received from the Home Ministry to My Digital ID Sdn Bhd (MYDIDSB) on Feb 20, 2024, after MYDIDSB was established.
MYDIDSB is a special purpose vehicle (SPV) company that Mimos set up on Jan 15, 2024, to implement the MyDID Project.
It found that much of the spending occurred without approval from the designated project committees.
From a financial perspective, the report found that the committee did not approve RM28.13mil in spending. This includes 11 project sub-scopes where expenditures were made without or exceeded allocated funds, totalling RM4.08mil.
This indicates weaknesses in internal controls and non-compliance with established governance and mandated procedures, the report said. The audit also found procurement lapses; equipment for the project’s Certificate Authority (CA), including security cages and door access systems, was purchased without Value Study Lab approval and remained unused.
“The audit review found that Mimos procured two units of door access systems and security cages (CA equipment) on Feb 23 and Feb 29, 2024, totalling RM79,000 under sub-scope F2: Data Centre Services for CA development,” said the report.
“The Value Management Study conducted from July 22 to 24, 2024, concluded that the CA development was not approved and recommended its removal from the project scope because Mimos was not the implementing agency. The CA development scope included servers, cages and safes.
“Further review showed that Mimos procured the CA equipment four days after a meeting decided to proceed with the Value Management Study. The Value Study subsequently recommended that CA development be excluded from the project scope.
“Physical inspection by Audit on Aug 5, 2025, found that the equipment remained unused and stored at the Mimos Data Centre,” added the report.
In response, Mimos acknowledges that the assets in question belong to MYDIDSB, and are in good condition and fully operational.
“According to the Mimos Group Procurement Guidelines and the Finance Ministry Guidelines, all group procurement must follow prevailing procurement procedures. The Procurement Department manages the Mimos Group procurement function on behalf of MYDIDSB.
“All procurement decisions related to MYDIDSB projects are fully handled by MYDIDSB management,” it said.
In addition, RM14.09mil meant for development was used to cover staff costs, emoluments, medical benefits and office equipment, in breach of the Guidelines for the Implementation of 12th Malaysia Plan projects.
In response, the Science, Technology and Innovation Ministry acknowledged that development allocations cannot be used for operational expenses under the 12th Malaysia Plan’s Development Project Implementation Guidelines and said it will ensure Mimos complies in the future.
