The 2026 Auditor-General’s report reveals 273 new cases of financial mismanagement, prompting calls for stricter human governance and accountability
KUALA LUMPUR: Timely and firm action is essential to prevent recalcitrant behaviour among government servants, said Malaysian Integrity and Governance Society president Datuk Seri Dr Akhbar Satar (pic).
“This must include demotion, salary adjustments, revocation of perks or reassignment to senior management positions for those who are performing diligently.
“This is also to show that no one is above accountability, reinforce integrity and deter repeated violations,” he told theSun yesterday.
Akhbar was responding to a front-page report published by theSun on the 2026 Auditor-General’s report which revealed that there were 273 new cases of financial mismanagement.
Former Auditor-General Tan Sri Ambrin Buang told theSun that the AG’s report, which is also facilitating RM316.68 million in government recoveries, only randomly covered a small fraction of the multitude of programmes and projects handled by the government.
Akhbar said more attention must be given to human governance where ethical behaviour, accountability and responsible decision-making are critical for reducing fraud and leakages in ministries.
“Digital systems reduce risk but cannot eliminate human governance failures. Even with digitalisation and systems like e-procurement, the human element remains the weakest link because people still make decisions, override controls or exploit loopholes.”
Akhbar also pointed out that the Malaysian Anti-Corruption Commission (MACC) Chief Commissioner Tan Sri Azam Baki had revealed in September that Malaysia lost RM277 billion to corruption between 2018 and 2023, equivalent to an average loss of about RM55 billion per year.
Akhbar said heads of departments should monitor and be accountable for fraud, leakages or mismanagement.
“Lack of monitoring and failure to comply with policies are key drivers of corruption and spending leakages.”
He said procurement fraud, especially bid-rigging, may not only be about high costs but also wastage of taxpayers’ money.
Akhbar, who was Transparency International Malaysia former president (2013-2019), said all audit queries must be acted upon promptly.
“It is not enough to identify discrepancies. Heads of departments must take immediate corrective action. This ensures accountability, prevents further leakage and reinforces a culture of integrity and human governance.”
Akhbar said there is a possibility of bias when issuing contracts if they are awarded based on personal connections rather than merit.
“Contracts should be awarded to only qualified, reliable and competent contractors through a system with strong oversight and continuous monitoring.
“They must avoid giving contracts, for instance, based on friends or old boys’ connections or business connections,” said Akhbar, who is HELP University Institute of Crime and Criminology director and professor of criminolgy and criminal justice.