SME Corp Exceeded Allocated Funds, Audit Report Reveals
Exceeding Allocated Funds
The Auditor-General’s Report 1/2025 has revealed that SME Corporation Malaysia (SME Corp) spent development grants beyond its allocated funds, resulting in a RM7.96 million debit balance. According to the report, the company recorded a debit balance for deferred grants under the Bumiputera Enterprise Enhancement Programme (BEEP) Plus at the end of the 2023 financial year.
Exceeding Allocated Amount
The report stated that SME Corp disbursed a total of RM73.81 million, exceeding the RM65.85 million originally allocated under the 11th Malaysia Plan. However, SME Corp did not obtain approval from the finance ministry to spend beyond the allocated amount.
Auditor’s Recommendation
The audit report urged SME Corp to ensure that funds were accounted for under programmes approved by the finance ministry and guarantee that they were used as intended. Additionally, the report recommended that SME Corp must ensure any uncommitted development grants from the 10th and 11th Malaysia Plans were returned to the finance ministry.
Conclusion
The audit report highlights the importance of proper financial management and accountability in government agencies. SME Corp’s failure to obtain approval for excess spending and failure to return uncommitted grants raises concerns about the agency’s financial management practices. It is crucial for government agencies to adhere to the principles of transparency and accountability to ensure the effective use of public funds.
FAQs
Q: What did the Auditor-General’s Report 1/2025 reveal about SME Corp’s financial management?
A: The report revealed that SME Corp spent development grants beyond its allocated funds, resulting in a RM7.96 million debit balance.
Q: How much did SME Corp disburse in development grants?
A: SME Corp disbursed a total of RM73.81 million, exceeding the RM65.85 million originally allocated under the 11th Malaysia Plan.
Q: Did SME Corp obtain approval from the finance ministry to spend beyond the allocated amount?
A: No, SME Corp did not obtain approval from the finance ministry to spend beyond the allocated amount.