Audit: Immigration Dept loses RM81.69 million in unclaimed penalties

KUALA LUMPUR: Weaknesses in terms of monitoring and agreements that are not very clear have resulted in losses for the Immigration Department amounting to RM81.69 million due to penalties not imposed on a company that handled the online collection of Temporary Employment Visit Pass (PLKS) revenue.

According to the the Auditor-General's Report (LKAN) Year 2020 published today, it was found that the Immigration Department has failed to impose penalties for late delivery of PLKS stickers amounting to RM73.89 million as well as delayed remittance penalties and penalties for printing the stickers wrongly, amounting to RM0.49 million and RM7.31 million, respectively.

"The audit also found that the PLKS service charge claim by the service company amounting to RM25.94 million has not been paid due to the Home Ministry's delay in finalising the additional agreement.

"The audit was conducted at the Foreign Workers Division and the Finance Division at the Immigration Department headquarters for the financial year 2020," the report said.

It also said that the audit recommended for the Immigration Department to make improvements and appropriate actions to ensure that the terms and clauses of the agreement are complied with and subsequently enforced to safeguard the interests of the government.

"Any exemption must obtain written approval from the authorising party and the Immigration Department must establish a periodic monitoring mechanism for the services provided by the said company," it said.

The report also recommended that monitoring must be done especially in relation to PLKS stickers that are damaged, late delivery and unused to ensure that they are handed over to users within the stipulated time and not misused.

Apart from that, the report also recommended that the Home Ministry and the Immigration Department to ensure that additional agreements are finalised as soon as possible to safeguard the interests of the government and avoid payment problems to the companies involved.

"The period of the PLKS renewal online service agreement between the Home Ministry and the service company is from May 2015 to May 2020. The Home Ministry has submitted an application for extension of the agreement to the Ministry of Finance on May 20, 2020.

"The Ministry of Finance on June 12, 2020, has approved the application for a period of three years from May 23, 2020 to May 22, 2023. However, the audit found that the additional agreement has not been finalised," report said.

-- BERNAMA