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Economic Audit - Auditor-General's report

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Category: Ramblings
Published Date Written by Jason Loo


With the recent revelations by the A-G's report on the financial conditions of the various government agencies, i believe this has become a hot topic among the Malaysian society. The A-G's report is considered a bold move in transparency. Although it has revealed the 'anomalies' surrounding the usage of taxpayer's money, there hasn't been any revelation on how to resolve the overall situation.

Personal-Finance-Tips


We know that these activities are happening all over, be it government or non-governmental organizations. For example, look at the WorldCom case and the Watergate scandal.

The viable solution would be to introduce strict operational policies governing the disbursement of funds and proper tracking of the funds' use. There should be an auditor for each government agency that conducts an audit every quarter to detect any discrepancies. Financial reporting should be up-to-date and available at any point in time.

I remembered during my days in a Multinational company where I was working on an application for the reporting of the global Account reconciliations that was examined by the relevant authorities every month. This was in accordance to the strict laws after cases like WorldCom happened.

overspending

Financial mismanagement and improper reporting of funds is a common activity that happens all around. Case in hand, my former employer (from another company) was jailed by the FBI for improper reporting of investor funds, resulting in the loss of millions.

With the advent of technology, the government should look into ways to govern internally using the full extent of technology available to them. I am talking about a massive overhaul of the entire governance of government agencies by using technology as the enabler.

According to the report, on top of the cases involving misuse of funds and inflated prices, Malaysia’s public debt rose by 12.3 percent or RM44.72 billion to RM407.11 billion last year compared to RM362.39 billion in 2009. A total of nine ministries were identified to have overspent RM 3.73 billion.

flying_money

In the past, i have never questioned why there were additional taxes, increase in taxes and decreased subsidies (petrol) ... but i can't help but wonder if all the taxes we are paying is going off to fund some rich fraudster pockets .... viva la  Malaysia !

References :

http://www.freemalaysiatoday.com/2011/11/13/govt-mismanagement-its-not-your-fathers-money/

http://malaysiansmustknowthetruth.blogspot.com/2011/11/uniforms-shoes-did-not-reach-sabah.html

http://www.theborneopost.com/2011/10/29/auditor-general%E2%80%99s-report-trim-wastage-and-minimise-corruption/


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