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Auditor general flags going concern issues at Felda, PR1MA

KUALA LUMPUR (March 6): Malaysia’s auditor general on Wednesday flagged going concerns issues at two federal government agencies Federal Land Development Authority (Felda) and PR1MA Corp Malaysia.
Both Felda and PR1MA face “going concern” issues — an accounting parlance that casts doubt on an organisation’s resources and income to stay afloat — based on levels of debt and reliance on government aid, the auditor general said in a statement following the release of the 2022 Auditor General Report.
Further, the 2022 report also focuses on the Armed Forces Fund Board (LTAT) over a decline in investment values in two subsidiaries and dividend payment based on non-cash profit to depositors, Auditor General Wan Suraya Wan Mohd Radzi said.
The report tabled to the Parliament on Wednesday covers 130 financial statements by government agencies for the year 2022 out of 140 submitted for audit. Four federal agencies have yet to submit their statements due to “financial system network disruption” and delay in appointment of board chairman.
The auditor general issued unmodified opinions — which generally means that auditors saw no issues with the statements presented — for 116 of the agencies. However, 14 of the federal agencies were given modified opinions comprising 13 qualified opinions and one adverse opinion.
Of the 130 audited statements, the auditor general said special attention should be given for financial performance of federal agencies for current surplus or deficit, asset and liabilities, federal government grant, borrowings and investment in subsidies.
The auditor general noted that 10 agencies had the highest borrowings totalling RM122.39 billion, of which four still owed the federal government RM5.34 billion though three of the four have rescheduled their repayments.
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Source: EdgeProp.my