Weaknesses of Malaysian public procurement: a review of auditor general’s reports
Journal of Financial Reporting and Accounting
ISSN: 1985-2517
Article publication date: 18 January 2022
Issue publication date: 20 November 2023
Abstract
Purpose
This paper aims to systematically analyze the weaknesses of public procurement in Malaysia as reported in the Auditor General’s Reports from 2011 until 2018. Specifically, the study examines the types of weaknesses, the modes of public procurement involved with the weaknesses, the procurement categories involved with the weaknesses and the key recommendations to mitigate the weaknesses in public procurement.
Design/methodology/approach
A document analysis was adopted in achieving the objective. The Auditor General’s reports and the reports of activities of federal ministries/departments published by the National Audit Department, Malaysia from the year 2011 until 2018 are the main documents used in this study. The data gathered were analyzed using frequency distribution and displayed with descriptive statistics and relevant graphs.
Findings
The findings of the study revealed that the top five reported are non-compliance to scope, specifications and terms of contracts; delayed completion/non-completion of project; poor documentation; low quality of products, service and work; and little or no prior planning. It is also found that direct negotiation mode was reported with the highest issues of public procurement, while the procurement mode with the least public procurement weaknesses is direct purchase. Moreover, it was found that work category is the highest with public procurement issues reported compared to supplies and services. The top recommendations given by the Auditor General were to improve internal control, to enhance monitoring, to establish planning in details, to improve assets management and to take appropriate actions toward contractors and procurement officers when needed.
Originality/value
This is among a few studies that attempted to systematically examine the main issues regarding the public procurement activities in Malaysia. This study highlighted pertinent aspects of the public procurement activities, which need close attention by the relevant authorities to ensure efficient and effective public procurement.
Keywords
Acknowledgements
Grant number: FRGS17-008-0574 Ministry of Higher Education Malaysia.
Citation
Mohamad Azmi, S.M. and Ismail, S. (2023), "Weaknesses of Malaysian public procurement: a review of auditor general’s reports", Journal of Financial Reporting and Accounting, Vol. 21 No. 5, pp. 999-1020. https://doi.org/10.1108/JFRA-05-2021-0132
Publisher
:Emerald Publishing Limited
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