Audit Report: Weak rental collection of highway concessionaires’ admin offices

KUALA LUMPUR, Oct 28  -- Weaknesses in rental collection for the highway concessionaires’ administrative offices in peninsular Malaysia, caused losses in revenue for the government, according to the Auditor-General Reports (LKAN) Year 2020.

According to the report, released today, RM2.57 million was not accounted for in the Consolidated Funds, and the rental of administrative offices amounting to RM2.77 million was also not collected for a period of between seven and 17 years.

“In addition, the rentals for commercial sites, collected by the concession companies from third parties and amounting to RM32.09 million, is not in compliance with the concession agreement because the rental rate for the commercial sites had not been decided by the government.

“This occurs because the lease agreement has yet to be signed between the Federal Land Commissioner (PTP) and the concession companies,” said the report which was released today.

The audit report this time was related to the financial statements of the federal government as well as the compliance audit of federal ministries and departments.

Meanwhile, to ensure compliance with the regulations and enforcement of the agreement clauses, the audit recommended that the Ministry of Works to take action to ensure the concession companies completed the lease agreement with the Department of Director-Genetral of Lands and Mines (JKPTG), so that rental collection for the administrative offices of the concession companies and commercial sites could be accounted for in the Consolidated Funds.

“In addition, the rental rate for the commercial sites should be set, so that the collection made by the concession companies could be accordingly accounted for in the Consolidated Funds,” the report said.

-- BERNAMA