A-G report: Eight borrowers with outstanding RM522 mln debt received write-off approval in 2020

KUALA LUMPUR: Eight borrowers with outstanding loans totalling RM522.37 million got approval for a write-off in 2020, according to the Auditor-General's Report (A-G's Report).

The A-G's Report said among the borrowers who got the write-off approval were Melaka with RM216.75 million, Pahang (RM205.72 million), Dewan Bandaraya Kuala Lumpur (RM42.02 million) and Syarikat Lebuhraya Shapadu Sdn Bhd (RM32.13 million).

In line with the write-offs, a sum of RM171.06 million has been adjusted with the Loan Registry, it said.

The adjustments comprised of a principal loan by Kumpulan Wang Pembangunan totalling RM70.15 million, interest amounting to RM88.36 million, late interest charges of RM6.41 million and a principal loan by Kumpulan Wang Pinjaman Badan Berkanun of RM6.16 million.

"The balance of a principal loan by Kumpulan Wang Pinjaman Badan Berkanun totalling RM351.31 million has not been adjusted because the allocation for write-off was not enough," according to the report which was presented in Parliament today.

Apart from that, the report also revealed that a loan by Perwaja Terengganu Sdn Bhd worth RM3.44 billion and Bank Pertanian Malaysia Bhd's borrowing of RM200 million was also written off in 2011 and 2012 respectively.

The A-G's Report said up to the end of 2020, those loans have not been adjusted and have an outstanding balance of RM2.71 billion, adding that a write-off should only be approved after a sufficient allocation has been provided.

"Write-offs that have not been adjusted in the same accounting period with the year of approval will affect the fairness of the amount that can be claimed. It will also cause discrepancies in the financial statements of both the federal government and that of the borrower," the A-G's Report said.

-- BERNAMA