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Audit Report: Sada's governance practice less satisfactory, financial position stable


Last Update: 15/07/2019




ALOR SETAR, July 15 (Bernama) -- The governance practices of Syarikat Air Darul Aman Sdn Bhd (Sada) were reported to be at a less satisfactory level, according to the Auditor-General's Report 2018 Series 1.

The report, released today, said Sada did not practice good governance, among others the agency’s Board Charter was not available, resulting in the duties and responsibilities of the Chairman could not be determined.

In addition, the appointment of the chief executive officer's (CEO) post was also found not in line with the best practices of corporate governance. 

“Good corporate governance can help the company to improve efficiency in achieving its objectives as well as enabling the company to be managed perfectly, transparently and with responsibility,” the report said.

Meanwhile, according to the report, Sada’s financial position was stable as the company recorded a pre-tax profit of RM16.84 million, RM8.1 million and RM1.26 million for 2015, 2016 and 2017, respectively.

On the performance of Sada for treated water production activities, the report said it had yet to reach high-efficiency level.

However, the quality of treated water supplied by Sada complied with the Standard Quality Assurance Programme (QAP) set by the Health Ministry, the report added.

The National Audit Department also audited the financial management of 12 state departments and agencies to assess whether they complied with the statutory and regulatory rules set.

It also pointed out that overall, the performance of the state financial management departments and agencies for 2018 were reported at good levels in their financial management compliance.

According to the report, five departments and agencies were found to have achieved an excellent level, while six at a good level and only one remained at the unsatisfactory level.

Nevertheless, the report mentioned several departments and agencies still needed to improve and strengthen the internal control of the financial management so as some issues raised would not be repeated.

In this regard, the report recommended among others to ensure the knowledge and skills of those involved in the financial management to be enhanced by providing appropriate training continuously.

Meanwhile, department heads also recommended taking appropriate action against officers who had been determined to commit a serious non-compliance which had resulted in losses and had affected the Government's image.

The state government agencies also suggested monitoring the company’s activities to ensure it had good corporate governance, complying with the government’s laws and regulations, competitive, and to ensure the objectives were achieved fully.

“The involved departments and agencies, not only needed to take action after receiving a warning from the Audit but also needed to act quickly as soon as the problems or weaknesses had been identified,” the report said.

  -- BERNAMA


 



 
 
 
 
 
 
 
 
 
     
   
 

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