KUALA LUMPUR: The Malaysian Maritime Enforcement Agency spent over RM300 million maintaining ageing vessels during 2024 according to the Auditor-General’s Report.
The agency incurred RM229.93 million in expenditure on vessels aged over 30 years and another RM78 million on boats aged between 11 and 20 years.
This spending reflects continued reliance on ageing assets that pose functionality risks and high maintenance costs.
Phased implementation of refit works without comprehensive planning led to an RM8.88 million cost increase.
Late penalty charges totalling RM2.27 million remained uncollected from companies that missed completion deadlines.
Payment control weaknesses included claims worth RM32.34 million processed without supplier invoices.
MMEA made payments of RM59,800 for equipment that was never supplied to the agency.
Additional payments of RM144,536 were made for equipment that failed to meet required specifications.
Technical tests were not conducted before asset acceptance, leaving several boats inoperable.
Required repairs within warranty periods involved work valued at RM173,075.
The report emphasised MMEA’s need to strengthen planning, financial compliance, and contract management.
It recommended more careful maintenance planning to ensure optimal spending of allocated funds.
MMEA should complete maintenance works within the same financial year to avoid cost escalation risks.
The agency must collect penalty charges from companies that fail to meet maintenance deadlines.
Supplier invoices should accompany all claims for verification to prevent unjustified payments.
All maintenance works should only receive payment approval after Harbour and Sea Acceptance Tests.
This adherence to engineering practices will guarantee quality and value for government expenditure. – Bernama