KWPPL suspends allowance payments amid RM2.55m audit query
KUALA LUMPUR: The Central Mercantile Marine Fund (KWPPL) has temporarily suspended allowance payments to its management representative following an Auditor General’s Report finding that RM2.55 million in allowances and benefits were paid last year without valid legal authority.
The Central Mercantile Marine Fund (KWPPL) has temporarily halted allowance payments to its management representatives following a report by the Auditor General. The report found that RM2.55 million in allowances and benefits were paid without valid legal authority last year. KWPPL stated that the disagreement arose from differing interpretations of legal authority and financial procedures governing the payments.
The allowances were sourced from KWPPL funds, not from the federal government's operating allocation via the Marine Department. Established under the Merchant Shipping Ordinance 1952 in 1953, KWPPL has been managed by the Merchant Shipping (Central Mercantile Marine Fund) Rules 1984 since then. The suspension is an administrative measure, not an admission of wrongdoing.
KWPPL reviewed various legal aspects before the decision and is now seeking official government channels for further direction and approval. The matter is being reviewed formally to ensure that future payment mechanisms are clearly determined. KWPPL expressed respect for the Auditor General's role and commitment to cooperate in resolving the matter, ensuring the fund's functions continue effectively and responsibly.
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