A-G’s report: RM2.55m in allowances paid without valid authority

According to the report, an audit of KWDA expenditure in 2025 found that RM2.31 million was paid as allowances and facilities to the KWDA Board and officers of the Malaysian Marine Department (JLM) without valid authority. — Bernama pic

First Published: Tuesday, 06 Oct 2026 9:02 AM MYT

KUALA LUMPUR, Oct 6 — A total of RM2.55 million from the Light Dues Fund (KWDA) and Marine Trade Centre Fund (KWPPL) was spent on allowances and facilities in 2025 without valid authority, according to the Auditor-General’s Report (LKAN) 2/2026.

Of the amount, RM2.31 million involved KWDA funds, while RM239,784 was from KWPPL.

According to the report, an audit of KWDA expenditure in 2025 found that RM2.31 million was paid as allowances and facilities to the KWDA Board and officers of the Malaysian Marine Department (JLM) without valid authority.

The payments were part of the total expenditure of KWDA and KWPPL, which amounted to RM131.98 million and RM6.77 million respectively in 2025.

As at December 31, 2025, KWDA had a balance of RM273.12 million, with receipts totalling RM103.48 million during the year, while KWPPL recorded a balance of RM24.72 million with receipts of RM5.81 million.

The report stated that the RM2.55 million in allowances and facilities was not provided for under the Federation Light Dues Act 1953 (Act 250), Merchant Shipping Ordinance 1952 and Financial Procedure Act 1957 (Act 61).

In its response dated July 2, 2026, JLM explained that the KWDA Board and KWPPL Committee were two separate entities established under different provisions and regulations, and therefore the payment of allowances was carried out based on the rules and decisions in force for each entity.

JLM also informed that the KWDA Board had approved the Lighthouse Board Regulations 2016, which stipulated fixed allowances and facilities for the Chairman and Board members in carrying out their functions and responsibilities as provided under Act 250.

According to JLM, the Management Representative, Secretary, Chief Collector, Meeting Secretariat and Operations Officer were also entitled to allowances and facilities at the approved rates. Officers with a direct interest were not involved in the consideration process, while decisions were made collectively.

However, the Audit concluded that KWDA and KWPPL constituted public funds, the use of which was subject to the laws governing the respective funds, Act 61 and the financial regulations in force.

Accordingly, the KWDA Board and KWPPL Committee were found not to have valid authority to approve the payment of the RM2.55 million in allowances and facilities.

LKAN also stated that Act 61 stipulated that for matters not specifically provided for, approval for payments was subject to the Minister’s jurisdiction. — Bernama