The report, which was tabled in the Dewan Rakyat today, said this reflected the maritime agency’s overreliance on ageing assets that incur high costs.

According to the report, RM229.93 million (61.7%) was spent on the upkeep of ships older than 30 years, while RM78 million (54.4%) went towards boats aged between 11 and 20 years.

The A-G’s report said the dependence on older assets increased maintenance risks and reduced MMEA’s operational efficiency.

It also flagged poor planning in refit works which were implemented in phases without a comprehensive plan, leading to an additional RM8.88 million in costs.

The agency also failed to collect RM2.27 million in late penalties from contractors who did not complete their refitting work on time.

Weak payment controls were another major issue: the audit found RM32.34 million in claims processed without supplier invoices, RM59,800 paid for equipment that was never delivered, and RM144,536 spent on items that did not meet specifications.

Some vessels were also accepted without technical trials like harbour acceptance and sea acceptance tests, resulting in non-operational boats that later required warranty repairs costing RM173,075.

The A-G’s report said these weaknesses pointed to systemic issues in financial compliance and asset management within MMEA, warning that public funds were at risk of inefficiency and wastage.

It recommended that the agency strengthen planning to ensure that maintenance projects are completed within the same year to avoid cost overruns.

It also urged MMEA to ensure that it collects penalties from contractors, verifies all payments with proper documentation, and carry out the necessary technical trials for ships before approving any payments.