Auditor-General Tan Sri Ambrin Buang KUALA LUMPUR (Nov 17): Auditor-General Tan Sri Ambrin Buang (pictured) said his department and the Malaysian Anti-Corruption Commission (MACC) have yet to receive any instruction to be part of the executive committee for the RM55 billion East Coast Rail Link (ECRL) project.

“There has yet to be an exco (executive council) formed, like there was for [other mega projects] such as the mass rapid transit project. If there is one, I am sure that they will include us and the MACC, so we will wait for [further instructions],” he told The Edge Financial Daily on the sidelines of the Malaysian Institute of Accountants (MIA) International Accountants Conference yesterday.

Chief Secretary to the Government Tan Sri Dr Ali Hamsa said last month that government projects costing RM500 million and more should involve the auditor-general and the MACC to curb abuses and corruption. He said the auditor-general and the MACC’s deputy director could be included as exco members in meetings for the projects.

Speaking at the MIA conference earlier, Ambrin stressed the need to improve public financial management, especially at a time when the country’s economy is facing strong headwinds.

“To me there is no doubt if we want to maintain a stable rating for [the] country, issues like the budget deficit and the growing public debt need to be addressed effectively.

“For instance, although the official public debt is still within the stipulated threshold of [55%] of gross domestic product, the amount spent each year to service this debt, which has been steadily increasing, is also an important factor which should not be ignored because of its impact on operating expenditure of the government,” he said.

From the audit perspective, Ambrin said there is a need for revenue agencies like the Inland Revenue Board and the Royal Malaysian Customs Department to strengthen their efficiency, given the uncertainty of global crude oil prices and the possibility of a reduced collection of taxes.

“On the expenditure side, while public expenditure can sustain economic growth to some extent, such expenditure must be based on the value for money principle, which places a premium on economy efficiency and effectiveness in every government expenditure.

“A more determined effort [is needed] to reduce significantly, if not totally eliminate leakages through combatting extravagant wasteful expenditure and misappropriation [of funds] which seem to be a common feature in our audit report,” he said.

This article first appeared in The Edge Financial Daily, on Nov 17, 2016. Subscribe to The Edge Financial Daily here.

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