Reform must go beyond post-audit fixes, says think tank

 Institute for Democracy and Economic Affairs says preventive governance is needed to stop recurring lapses flagged in the latest auditor-general’s report.

IDEAS said the 2026 Auditor-General’s Report should function as an early warning system.

PETALING JAYA:

 The Institute for Democracy and Economic Affairs (IDEAS) has urged Putrajaya to shift its focus from post-audit corrections to preventive governance, following recurring weaknesses flagged in the 2026 Auditor-General’s Report Series 1.

IDEAS acknowledged the government’s follow-up efforts, noting that as of Dec 31, 2025, 94.4% of audit issues had been resolved, with RM316.68 million recovered and collected.

However, the think tank’s CEO, Aira Azhari, said that recovering funds after irregularities occur should not be treated as the yardstick of reform.

“The A-G’s report should function as an early warning system,” she said in a statement today.

“Without stronger preventive controls, clearer accountability and performance-based oversight, the same weaknesses will continue to recur.”

IDEAS called for entities managing significant public funds, including subsidiaries and special purpose vehicles, to be subject to the same transparency and reporting standards as core government agencies, with clear timelines, measurable progress updates and stronger parliamentary oversight.

The latest report, tabled in the Dewan Rakyat, covered financial statements for 2024 and examined the activities of federal ministries, departments and statutory bodies, as well as state ministries, departments, agencies and state-owned companies.

Several federal agencies, including the Human Rights Commission of Malaysia and Universiti Kebangsaan Malaysia, were flagged for financial misstatements and irregular transactions.

The report also covered audits of high-impact programmes, including the MyDigital ID project under Mimos Bhd, where auditors found that approximately RM28.13 million was spent without prior verification by designated project oversight committees. - FMT