RM28.13 MLN MYDID PROJECT UNDER MIMOS SPENT WITHOUT APPROVAL - LKAN

KUALA LUMPUR, Feb 23 (Bernama) -- The Auditor-General’s Report (LKAN) 1/2026 found weaknesses in expenditure management and internal controls during the initial phase of the MyDigital ID Project (MyDID), which was implemented under the management of MIMOS Berhad

According to the LKAN report on the Activities of Federal Ministries/Departments/Statutory Bodies and the Management of Federal Government Companies, the project’s governance structure did not function as stipulated, including the absence of formal presentations on expenditure approvals and the project’s implementation status during meetings.

The report, which was tabled in the Dewan Rakyat today, said that, from a financial perspective, auditors found that a total of RM28.13 million had been spent without the approval of the designated committee.

“This involved 11 project sub-scopes, with expenditures made without or in excess of approved allocations, amounting to RM4.08 million, as well as overspending of RM70,000 for one sub-scope beyond its approved cost. This reflects clear non-compliance with the project’s cost structure and agreed terms,” the report said.

In addition, the report confirmed that spending on resource costs, emoluments, staff medical benefits and office equipment, amounting to RM14.09 million, by MIMOS, was paid using development funds.

The findings contravened the 12th Malaysia Plan (12MP) Development Project Implementation Guidelines, which do not allow emoluments or the procurement of office equipment to be financed using development allocations, thereby indicating expenditure that did not comply with the approved purpose of vote.

From a procurement perspective, the report found that the purchase of security cages and door access systems was carried out without approval from the Value Management Laboratory, and that the equipment was not utilised, resulting in financial wastage and reflecting weaknesses in asset control.

“Overall, as one of the board of directors, the MIMOS representative should have exercised fiduciary powers and responsibilities by ensuring that all governance processes and internal controls were complied with at all times, to safeguard the best interests of the MyDID Project.

“This includes the need to comply with the conditions imposed by the Home Ministry (KDN) on the management of MyDigital ID Sdn Bhd (MYDIDSB), to ensure that these conditions are duly observed,” the report said.

To prevent a recurrence of similar issues, MIMOS was recommended to implement improvements, including ensuring that all project expenditures are carried out in accordance with approvals by the relevant committees and in compliance with the approved cost structure and purpose of allocation.

This includes compliance with the 12MP Development Project Implementation Guidelines to prevent unauthorised expenditure being charged to development funds (purpose of vote).

In addition, MIMOS was recommended to strengthen the governance of development grants, to ensure that decisions related to allocations, project implementation and procurement are made with transparency, accountability and in accordance with existing regulations.

In July 2023, the government appointed MIMOS as the implementing agency for the MyDigital ID Project (MyDID), with an initial allocation of RM80 million.

-- BERNAMA