RM68.81m in contractor advance payments still unrecovered, Audit Dept finds

A report from the Auditor-General reveals that RM68.81 million in contractor advance payments, allocated to 24 projects across five ministries, remains unrecovered. The Ministry of Education, Ministry of Defence, Ministry of Home Affairs, Ministry of Transport, and Ministry of Works are the affected ministries. Most of the outstanding payments have been outstanding for over a decade, with 86.7 per cent of the total amount.

The audit found that while management of WPK by the ministries followed the relevant circulars and regulations, the significant backlog of unpaid payments was concerning. Of the RM59.63 million in overdue WPK from projects over 10 years old, 21 companies were either dissolved or wound up, with the latter involving RM27.76 million.

Five dissolved companies owed RM10.68 million, which cannot be recovered. The audit also highlighted reporting errors, such as RM5.67 million not being recognized as WPK receivables. The report recommends that ministries take immediate action to recover the outstanding amounts, particularly following the winding-up of companies or termination of contracts.