AG Report: Marine Department paid RM2.55m in allowances without legal authority

The Auditor General's Report 2/2026, presented in Parliament, reveals that the Marine Department disbursed RM2.55 million in unauthorized allowances and benefits during 2025. The payments originated from the Light Dues Fund (RM2.31 million) and the Maritime Trade Center Fund (RM239,784). These disbursements lacked legal backing as they did not comply with the Federal Light Dues Act 1953, Merchant Shipping Ordinance 1952, or the Financial Procedure Act 1957.

According to the report, the Marine Department chairperson, board members, and officers received annual allowances and amenities ranging between RM60,000 and RM217,000, with fixed monthly payments totalling RM765,016 from the Light Dues Fund. From the Maritime Trade Centre Fund, the chairman, fund committee, and officers received annual allowances between RM21,200 and RM68,835, with monthly payments totaling RM203,685.

Besides fixed allowances, additional perks such as meeting attendance, digital devices, and ceremonial attire allowances were taken from these funds, amounting to RM1,547,505 and RM36,099 respectively. The Marine Department maintains that the allowances and benefits were authorized by the respective regulations and decisions governing the funds.

However, the Auditor General recommends that the department halt the payments until legal interpretation and financial procedures for each payment category are finalized. She also suggests that the Finance Ministry review all payments and benefits made through government Trust Funds and Public Trust Funds.