THE office of the Auditor-General (AG) is respected for its integrity and detailed audit reports that expose mismanagement and misuse of public funds. However, this year, the AG has faced various allegations and criticisms.

Media articles by Walter Sandosam and Ibrahim M Ahmad have questioned the credibility and competence of the AG’s report on HRD Corp. They claim the report lacks balance, fails to understand professional auditing, and does not provide HRD Corp with an opportunity to respond.

Critics have also pointed out discrepancies between the AG’s findings and the financial audit by BDO, which cleared HRD Corp without qualifications. These allegations are seen as unfairly diminishing the AG’s reputation.

The AG’s audit reports, mandated by the Constitution and the Audit Act 1957, cover financial and performance audits of government entities and are presented to Parliament for scrutiny. Performance audits, unlike financial audits, assess the efficiency and effectiveness of programmes over several years.

The AG’s report on HRD Corp highlighted serious issues, such as a significant loss in an investment and bypassing the investment panel for approvals. Critics have dismissed these findings by focusing on the financial audit’s clean report.

The human resources minister’s call for a third-party audit and the legal threats from HRD Corp further complicated the situation, raising questions about regulatory abuses.

Despite criticisms, the AG’s role is crucial for accountability in government-linked companies (GLCs), which often suffer from governance issues due to conflicting statutory and market-based rules. The recent amendments to the Audit Act 1957 aim to strengthen the AG’s powers and resources to audit companies receiving government support.

Prime Minister Anwar Ibrahim’s anti-corruption stance is under scrutiny as the public awaits concrete actions against those misusing public funds. The AG’s work remains vital in exposing and addressing such abuses. – August 1, 2024.

* Dr. Raman Letchumanan reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.