Education ministry working to recover payments advanced to contractors

The education ministry of Malaysia is working to recover RM3.78 million in advance payments from a company whose contract was terminated over a decade ago, as per Deputy Minister Wong Kah Woh. This is one of two active firms owing a total of RM5.43 million in contractor advances to the ministry. Wong indicated that follow-up actions such as civil actions or letters of demand against active companies would be considered if there has been a breach of contract.

The ministry is also dealing with RM1.79 million in contractor advances to three dissolved or wound-up companies, which cannot be recovered due to the companies' inability to take legal action. Furthermore, the ministry has submitted claims to the insolvency department for RM20.79 million in outstanding advances to 10 other dissolved or wound-up companies from 2013 to 2026.

The ministry aims to conduct the claims process systematically and comprehensively by submitting proof-of-debt forms and checking the availability of dividend distributions. Tightening management of development projects through improved work procedures, systematic monitoring, and stricter compliance with financial regulations and contract conditions is also a priority to safeguard government interests and enhance governance and accountability in public financial management.