PETALING JAYA: Five ministries have yet to collect RM68.81mil in contractor advance payments (WPK) involving 24 projects, some of which had been outstanding for more than 10 years.
The five are the Education, Defence, Home Affairs, Transport and Works ministries.
“However, as at Dec 31, 2025, outstanding WPK Accounts Receivable (ABT) amounting to RM68.81mil involving 24 projects had yet to be collected. Of this amount, RM59.63mil, or 86.7%, had been outstanding for more than 10 years and involved 21 companies,” said the Auditor-General’s Report Series 2/2026 which was tabled in Dewan Rakyat on Monday (Oct 5).
WPK receivables outstanding for less than five years amounted to RM9.18mil and involved three active companies.
Meanwhile, RM10.68mil in WPK receivables involved companies that had been dissolved.
“In addition, delays in taking follow-up action against wound-up companies, including submitting Proof of Debt Forms to the Insolvency Department (MdI), had also resulted in the WPK ABT balance not being fully recovered,” it said.
In addition, a WPK balance of RM5.67mil involving two projects under the Education and Transport ministries was not reported as WPK ABT, resulting in the actual outstanding balance not being accurately reflected, it said.
However, the Auditor-General found that the overall management of WPK by the ministries complied with the Government’s financial regulations.
The Audit recommended follow-up action against companies under the Education and Works ministries that had been wound up, including the submission of Proof of Debt Forms to the Insolvency Department and obtaining the status of dividend distribution to safeguard the Government’s interests.
It also recommended that immediate civil action be taken or letters of demand issued against active companies under the Education and Home Affairs ministries where there had been a breach of contract, to ensure compliance with statutory provisions relating to limitation periods.
“The Transport Ministry should report WPK ABT immediately once a Termination Notice is issued to a company to accurately reflect the actual outstanding WPK balance that remains unrecovered,” it added.
