The 2025 Auditor-General’s Report Series 2, which was tabled in the Dewan Rakyat today, named Felcra Bhd, Universiti Kebangsaan Malaysia (UKM), and the army as being involved in questionable spending and weak oversight between 2020 and 2024.

In a statement, Auditor-General Wan Suraya Wan Radzi said Felcra was flagged for leasing four oil palm estates worth RM241.76 million without proper board approval or expert review, which she said showed poor governance in how the land deals were handled.

Wan Suraya said three UKM tenders worth RM58.45 million were given to companies that were not supported by evaluation committees.

The audit also highlighted the army’s failure to collect RM162.75 million in late fees for the delayed delivery of armoured vehicles and to impose RM1.42 million in penalties for delayed maintenance.

The report also identified weaknesses in the implementation, monitoring, and enforcement of the subsidised cooking oil programme under the domestic trade and cost of living ministry, particularly in failing to properly target beneficiaries and the inefficient quota system.

Wan Suraya also noted that the selected pre-qualification procurement method introduced by the finance ministry was found to have potential for manipulation, where ineligible companies were still shortlisted for final selection.

“The audit recommends that the selected pre-qualification procurement method should not be continued. Open tender procurement would be more appropriate to ensure accountability and transparency in the procurement process,” she said.

A total of five audits involving seven ministries were conducted, covering programmes, activities, and projects worth RM48.873 billion. A total of 22 audit recommendations were submitted to the ministries, departments, and companies involved.

Wan Suraya also said that follow-up audits by the national audit department from 2024 to June 2025 helped the government recover RM157.73 million, including through penalty collections, taxes, and fines.