KUALA LUMPUR, July 23 — The Auditor-General’s Report 2/2025 has uncovered critical lapses in the Malaysian Army’s RM7.8 billion procurement of armoured vehicles, revealing delayed deliveries, full payments despite unmet contract terms, and weak enforcement of penalties.
The audit found that key assets like the GEMPITA, ADNAN, PENDEKAR, LIPAN BARA, and MIFV vehicles faced delays between 2020 and 2023, with one supplier failing to deliver 68 GEMPITA units on time, incurring a RM162.75 million fine claimed only two years after the contract expired.
The report also criticised the Defence Ministry for paying RM7.52 billion in full despite late deliveries, inadequate performance bond coverage, and for failing to impose RM1.42 million in penalties for delayed maintenance services.
It flagged RM107.54 million in irregular small-batch procurements that bypassed open tender rules, and warned of increased governance risks due to the absence of major contracts. The audit urged stricter oversight, timely penalty enforcement, and centralized procurement processes for transparency and accountability.
