AUDIT REVEALS RM183.11 MLN IN UNRETURNED GRANT BALANCES ACROSS FOUR MINISTRIES

KUALA LUMPUR, Feb 23 (Bernama) -- The National Audit Department reported that as of 30 June 2025, unreturned research grants across four ministries totalled RM183.11 million, covering 7,904 projects.

According to the Auditor-General’s Report (LKAN) 1/2026, which was tabled in the Dewan Rakyat today, the ministries involved are the Ministry of Higher Education (MOHE), the Ministry of Investment, Trade and Industry (MITI), the Ministry of Science, Technology and Innovation (MOSTI), and the Ministry of Agriculture and Food Security (KPKM).

The audit found that this reflects weaknesses in financial control management, project monitoring, and project closure procedures, as well as an inefficient use of research funds to achieve their intended impact.

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MOHE recorded the highest unreturned balance of RM110.67 million, involving 7,823 projects across five research universities: Universiti Kebangsaan Malaysia (UKM), Universiti Teknologi Malaysia (UTM), Universiti Sains Malaysia (USM), Universiti Putra Malaysia (UPM), and Universiti Malaya (UM).

Additionally, two implementing agencies under MITI recorded unreturned grant balances totalling RM55.64 million, while MOSTI recorded RM14.33 million and KPKM recorded RM2.47 million.

The audit also found that RM9.72 million, or 5.3 per cent, had been outstanding for over 10 years, while RM89.82 million, or 49 per cent, had been unreturned for five to nine years.

The report said unmonitored research grant balances could be used for purposes other than those originally approved.

In addition, MITI had RM55.64 million in unreturned research grants under the 11th Malaysia Plan (11MP), involving the Malaysian Investment Development Authority (MIDA) and Malaysian Industrial Development Finance Bhd (MIDF).

The report said agencies used leftover funds to finance new 12MP projects without approval from the Finance and Economy Ministries.

-- BERNAMA