Auditor General Flags Felcra, UKM, and Army Vehicle Deals for RM570m Governance Failures and Violations

The Auditor General’s Report uncovered serious irregularities in three out of five audited government entities under the 11th and 12th Malaysia Plans. First, Felcra Bhd showed governance failures involving RM241.76 million across four plantations (2022-2024). Second, Universiti Kebangsaan Malaysia’s tender process violated procedures by awarding RM58.45 million worth of contracts to companies not recommended by evaluation committees. Third, the army vehicle contract audit revealed RM162.75 million in uncollected late delivery penalties for Gempita vehicles, RM1.42 million in uncollected service delay penalties, and RM107.54 million in split procurements to bypass regulations. Transparency International Malaysia attributes these to outdated procedures, weak financial oversight, and a culture of impunity, urging swift remedial action to restore public trust.