KUALA LUMPUR, Oct 6 — The Auditor-General’s Report 2025 (Series 3) has highlighted weaknesses in the management of government vehicles under concession, including an estimated RM54.51 million in uncollected penalties for delayed deliveries, according to Free Malaysia Today (FMT).
Tabled in the Dewan Rakyat today, the report revealed that as of December 31, 2024, a total of 6,028 vehicles were delivered between one and 508 days later than the 60-working-day limit set from the date of order.
According to FMT, the audit also found no evidence of any penalty claims being imposed on the concession companies despite the repeated delays.
The Auditor-General further noted that the federal government had incurred around RM28.79 million in additional costs by continuing to operate vehicles with expired lease periods instead of replacing them within the prescribed timeframe.
Citing the report, FMT said the finance ministry has since established a penalty committee and a working group to review and determine the appropriate claims to be submitted by the respective ministries.
The committee, chaired by the Treasury’s deputy secretary-general (investment), comprises representatives from several divisions within the ministry and the Accountant-General’s Department.
FMT also reported that on August 18, the finance ministry held an engagement session with all ministries to present the audit findings and outline follow-up actions to be taken.
According to the report, the ministry signed a new concession agreement (CA2) on January 31, 2022, covering the supply, repair, maintenance, and management of government vehicles.
The 15-year agreement, which runs from July 31, 2022, to July 30, 2037, replaces the earlier concession (CA1) that had been extended four times before ending in July 2022.
As of the end of last year, 14,459 vehicles had been supplied under the concession system — 5,881 under CA1 and 8,578 under CA2 — with 11,322 allocated to government departments and 3,137 designated as official vehicles.
Under both concession agreements, monthly payments include leasing costs as well as repair, maintenance, and ancillary (RMA) fees, which increase as the vehicles age.
Between 2021 and 2024, ministries collectively paid about RM1.75 billion in leasing, repair, and maintenance costs for vehicles under CA1 and CA2, FMT reported.
The National Audit Department has urged the finance ministry to recover the uncollected RM54.51 million in penalties and address delays in replacing vehicles whose lease terms have expired.
