Auditor General flags multi-year contractor payment arrears and utility cost reporting gaps

The Auditor General, Datuk Seri Wan Suraya Wan Mohd Radzi, disclosed that RM68.81 million in contractor advance payments across 24 projects has not been recovered, with RM59.63 million overdue for more than ten years, largely due to companies that have been wound up or dissolved and delayed follow-up. She noted that RM5.67 million in mobilisation payments for two projects was not listed as uncollected receivables, leading to an inaccurate portrayal of the government's finances.

The report also identified RM90.50 million in utility relocation cost receivables as of 31 December 2025, of which RM84.05 million is overdue by over twelve months, and pointed out that RM30.46 million should not have been recorded because it relates to fully funded 10th Malaysia Plan projects. Claims worth RM63.16 million for eleven projects have not been submitted despite the deadline passing. The auditor recommended that the works ministry submit Proof of Debt forms for dissolved firms, pursue legal action against active ones, and ensure timely reporting and verification of all receivables.