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MCMC responds to Auditor-General 2018 Report Series 1

The latest Auditor-General Report 2018 Series 1 which was released a couple of days ago revealed that the Malaysian Communications and Multimedia Commission (MCMC) under the previous Barisan Nasional (BN) government spent nearly RM13 million on special projects unrelated to its job scope, over a two-year period.

Auditor-General 2018 Report Series 1

The audit checks found that MCMC does not require commission members to grant approval for special projects.

Among what was spent include:

  • RM104,679 on predictive analytics on the Sungai Besar by-election in 2016
  • MyInsight System, which cost the commission RM4.75 million
  • RM100,000 as donation for 50,000 copies of Datuk Seri Najib Razak’s book in February 2018
  • 74 payments classified as ‘special projects’ worth RM671.32 million, among others.

MCMC made the following media statement today in response to the Auditor-General Report 2018 Series 1:

The Malaysian Communications and Multimedia Commission (MCMC) takes serious note of the findings and recommendations raised in the latest edition of Auditor-General’s Report 2018 Series 1 that has highlighted mismanagement of the MCMC Fund.

The report revealed that under the previous Minister’s helm, the approval for projects was not implemented transparently as the funds were released without a clear basis. This has breached the requirements under the Malaysian Communications and Multimedia Commission Act 1998.

MCMC under the helm of YB Gobind Singh Deo, the Minister of Communications and Multimedia has implemented various initiatives in reforming and improving existing procedures and enhancing governance since May last year. This include:

  1. Stopped all Corporate Social Responsibility (CSR) programme for the Minister and the existing allocation has been transferred to MCMC’s operating expenses
  2. Updated existing guidelines on financial authority limit to ensure that every approval involving MCMC’s finances are approved by those who are authorised and mandated to give approval
  3. Dissolution of subcommittees previously entrusted to approve matters closely related to the usage of the MCMC Fund, whereby those items (subject to the updated financial authority limit) would be extended to Commission Members for assessment and approval
  4. Standard operating procedures for any approval are enhanced whereby each project, rising matters and every item that needs approval from the management are presented, discussed and/or approved in MCMC’s Management Committee Meeting before it is presented to Commission Members

MCMC would like to reiterate that it will not tolerate any misconduct by any of its officers. MCMC believes in the effective investigation by the Malaysian Anti-Corruption Commission (MACC) and will fully cooperate with the MACC throughout their investigation process.

As a regulator responsible for the communications and multimedia industry in Malaysia, MCMC adheres to its integrity values and is confident in improving performance to successfully develop a world-class communications and multimedia industry.

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy
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