Auditor-General’s report must lead to accountability

The Auditor General’s Report 1/2026. — Photo courtesy of National Audit Department

EVERY year when the Auditor- General’s Report is released, there’s a flurry of headlines, some raised eyebrows – and then silence.

This document isn’t just another box to tick in Malaysia’s annual routine; it’s a mirror that reflects a governance landscape, which has both reasons for quiet confidence and glaring cracks that cannot be ignored.

Let’s start with the good news. The report shows that the backbone of our financial reporting is still intact. Most federal agencies are getting clean audits, which tells us that basic accounting discipline is holding up.

What’s even more encouraging is how the Auditor-General’s office is widening its lens. With the “follow the public money” approach, they are now looking beyond just ministries and departments to government-linked companies (GLCs) and their subsidiaries.

And it’s paying off. Millions of ringgits have been recovered or saved through audit interventions, proving that these reports can actually put money back where it belongs.

But alongside the wins, the same old problems keep coming back year after year – weak procurement practices, contracts awarded against evaluation recommendations, penalties that are never enforced and projects delayed until they become irrelevant.

The fact that these issues keep reappearing tells us we are good at identifying problems, but not nearly good enough at preventing them.

Procurement, in particular, remains a sore spot. The practice of splitting contracts to skirt approval limits is one example. When you’re dealing with public money, even small cracks can lead to massive leaks.

Then there’s the GLCs problem. These entities were created to drive national growth, but too many are underperforming and some are bleeding losses. This is not just a balance sheet problem; it’s a governance problem, too. When public-backed companies falter, we all pay the price.

But perhaps the most frustrating part is the accountability gap. Nobody faces any real consequences afterwards. Over time, this doesn’t just invite complacency; it also eats away at public trust.

We need to shift from a mindset of catching to one of prevention. Audits shouldn’t just arrive after the damage is done. We need internal audit units that actually have teeth, risk management systems that work, and early warning mechanisms that flag trouble before it spirals.

A proper Public Procurement Act would give us a clear, enforceable framework to curb abuse and increase transparency.

Paired with digital systems and independent oversight, this will help to rebuild public confidence.

Accountability must also become visible and consistent. Every major audit finding should come with a clear response – investigate, fix and, if needed, penalise. Parliamentary oversight committees need real power to ensure recommendations aren’t just politely acknowledged but also implemented within set deadlines.

Set clear performance targets for GLCs. Hold them to governance standards that match the best in the private sector and let go of chronic underperformers. These institutions should be assets to the nation, not liabilities.

Good governance isn’t just about having the right rules; it’s also about a shared commitment to responsibility, integrity and treating public resources like they actually matter.

The Auditor-General’s Report has done its job. Now, it’s up to our policymakers, institutions and leaders to act.

Stop treating audits as an annual formality and start embracing a style of governance that’s proactive, accountable and genuinely forward-looking. Managing public money isn’t just about doing things right; it’s also about doing the right things.

KT MARAN

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