Nine Ministries or Depts Overspent By RM3.73bil

Tuesday October 25, 2011

From: http://thestar.com.my/news/story.asp?file=/2011/10/25/nation/9767689&sec=nation (accessed 25 October, 2011)

PETALING JAYA: Nine ministries or departments have overspent their operating allocation for last year by a total of RM3.73bil, according to the Auditor-General’s Report.

They were the Education Mi-nistry, Health Ministry, Home Ministry, Defence Ministry, Agriculture and Agro-Based Industry Ministry, Public Service Department, Attorney-General’s Department, Malaysian Anti-Corruption Com-mission and Public Services Com-mission.

The report said feedback from the ministries and departments showed that they had a thrifty policy but the overspending happened because of unavoidable circumstances due to increased activities and unscheduled payments.

The Parliament had approved the additional allocation in a circular dated June 3.

“According to financial rules, an expenditure can only be carried out if the approved financial allocation was sufficient.

“The audit checks found that this rule was not fully abided by several ministries which overspent.

“Some ministries and departments also did not spend the approved allocations. This shows that there is still weakness in the planning and management of expenditure, although this issue has been frequently raised,” the report stated.

An analysis of last year’s operating expenditure found 138 cases of weak expenditure management totalling RM360.96mil, it said.

As for the development expenditure, the report stated that seven ministries or departments had overspent by RM16.45mil to fund 12 projects.

According to the ministries and departments, the over-expenditure was because the transfer of allocations could not be implemented before the closing of accounts and expenditure during natural disasters, the report said. (emphasis added).

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