A-G’s Report: MMEA Spent Over RM300 Million Maintaining Ageing Assets

KUALA LUMPUR, Oct 6 (Bernama) -- The Malaysian Maritime Enforcement Agency (MMEA) was found to have incurred RM229.93 million in expenditure on vessels aged over 30 years, and RM78 million on boats aged between 11 and 20 years.

According to the Auditor-General’s Report Series 3/2025 on the 2024 Federal Government Financial Statements, the spending reflected a continued reliance on ageing assets, which poses risks in terms of functionality and maintenance costs.

The report also revealed that the phased implementation of refit works without comprehensive planning led to a cost increase of RM8.88 million, while late penalty charges amounting to RM2.27 million had yet to be collected from companies that failed to complete the works on schedule.

“Weaknesses in payment control by MMEA were also identified in cases involving claims amounting to RM32.34 million without supplier invoices, payments of RM59,800 for equipment that was not supplied, and RM144,536 for equipment that did not meet specifications,” according to the report tabled in Parliament today.

It also noted that technical tests, namely the Harbour Acceptance Test (HAT) and Sea Acceptance Test (SAT), were not conducted before asset acceptance, resulting in several boats being inoperable and requiring repairs within the warranty period involving a scope of work valued at RM173,075.

“Overall, these findings highlight the need for MMEA to strengthen its planning, financial compliance, and contract management to ensure that development expenditure is utilised efficiently and delivers the best value to the government,” it said.

In this regard, the report recommended that MMEA plan the maintenance of its ships and boats more carefully to ensure that allocated funds are optimally spent and that maintenance works are completed within the same financial year to avoid the risk of cost escalation.

“The MMEA is also advised to ensure that penalty charges are collected from companies that fail to complete maintenance works on time, with supplier invoices attached to claims for verification to prevent excessive or unjustified payments.

“The agency must also ensure that all ship and boat maintenance works are only approved for payment after the HATs and SATs have been carried out, in accordance with best engineering practices and asset acceptance procedures, to guarantee quality and value for government expenditure,” the report said.

-- BERNAMA