Education ministry working to recover payments advanced to contractors

 Deputy minister Wong Kah Woh says action will be taken on issues raised in the Auditor-General’s Report 2/2026.

Deputy minister Wong Kah Woh said the education ministry is also dealing with unrecovered contractor advances involving companies that have been dissolved or wound up. (Bernama pic)

KUALA LUMPUR:

The education ministry is still trying to recover RM3.78 million in advance payments from a company whose contract was terminated more than 10 years ago, says deputy minister Wong Kah Woh.

Speaking in the Dewan Rakyat today, Wong said the company was one of two still active firms that owe the ministry a total of RM5.43 million in contractor advances.

He said the ministry would take follow-up action raised in the Auditor-General’s Report 2/2026 based on the facts of each case and legal advice.

“This includes civil action or the issuance of letters of demand against active companies if there has been a breach of contract,” he said.

Wong said the ministry was also dealing with unrecovered contractor advances involving companies that had been dissolved or wound up.

He said outstanding advances to three companies that had been wound up accounted for RM1.79 million.

“The amount cannot be recovered because the companies have been dissolved and no longer have the capacity for legal action to be taken against them for their respective liabilities,” he said.

Wong said the ministry had also submitted claims to the insolvency department involving 10 companies that were dissolved or wound up between 2013 and 2026 and had RM20.79 million in outstanding advances.

“Follow-up action is still being taken in relation to one other company,” he said.

He said the ministry would ensure the claims process was carried out systematically and comprehensively, including submitting proof-of-debt forms to the insolvency department, and checking whether dividend distributions remained available.

“This is important to ensure every available avenue to recover government funds is fully utilised, while safeguarding the government’s interests and strengthening governance and accountability in public financial management,” he said.

Wong said the ministry was also tightening its management of development projects through improved work procedures, more systematic monitoring, and stricter compliance with financial regulations and contract conditions. - FMT