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[UPDATED] NAD's audit of 2,000 GLCs next year gets govt nod

KUALA LUMPUR: The government fully backs the National Audit Department's (NAD) audit of 2,000 government-linked companies (GLCs) starting next year.

Prime Minister Datuk Seri Anwar Ibrahim said the department's involvement would enhance lower-level oversight and help resolve the frequent confusion among agencies.

"I cannot deny that a significant portion of them are doing well. That is why, in my budget speech, I mentioned Ramly Burger, which has now grown into a large network, supported by BSN.

"Then there is also Aerodyne, where almost all drone requirements for Google come from Aerodyne, a company based in Malaysia supported by Khazanah Nasional Bhd and the Retirement Fund Inc (KWAP).

"Therefore, the call for continued oversight is justified and we have also agreed that the Auditor-General should audit all 2,000 companies.

"I believe this will be a wake-up call, ensuring greater accountability, as violations occur at various levels. There is no other way but for us to conduct audits and maintain continuous monitoring," he said during Prime Minister's Question Time in the Dewan Rakyat today.

Anwar said this in response to Datuk Mohd Shahar Abdullah (BN-Paya Besar) on the action plans under the reform agenda, specifically for GLCs, government-linked investment companies (GLICs) and agencies to ensure a balance between corporate objectives and national socio-economic responsibilities.

In September, the NAD announced that it would be auditing 2,000 GLCs beginning next year to create a new era of enhanced governance in Malaysia.

Auditor-General Datuk Wan Suraya Wan Mohd Radzi said the initiative follows the recent approval of the Audit Act 1957 amendment bill in July 2024, which significantly strengthens the Auditor-General's powers, thus enabling a more comprehensive oversight of public spending in Malaysia.

Meanwhile, the prime minister said the government was also committed to addressing overlapping functions within statutory bodies and government-linked companies (GLCs) through the establishment of a rationalisation coordination office for statutory bodies, the Dewan Rakyat heard today.

Anwar said this was necessary as there was an overlap of agencies and that some agencies were operating differently from their original objectives.

"What were those original objectives? To generate growth, be commercially viable and at the same time, fulfil national agendas, including the Madani economic framework and strengthening the Bumiputera economy.

"After reviewing this, we decided to establish a rationalisation coordination office for statutory bodies, including Companies Limited by Guarantee (CLBG).

"Additionally, to ensure clear implementation, we founded the 'Pantau Madani' to ensure that the objectives remain on track. The Auditor-General has already raised concerns about certain violations and we must address these," he said.

He also said there have been certain agencies that have seen some merging progress, such as the merging of the Malaysian Aviation Commission (Mavcom) and the Civil Aviation Authority of Malaysia (CAAM).

"There is also the Halal Development Corporation (HDC) and the Malaysia External Trade Development Corporation (Matrade), whose work is quite similar. So it would be more efficient to combine them, saving costs and improving efficiency.

"There is also a need to remind these bodies that even though they operate independently under their respective boards, not to disregard the principles of governance and management that have been set."

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