PETALING JAYA: About RM3.19mil in land lease payment to the Langkawi Development Authority (Lada) was found to be overdue by the Auditor-General's Report 2022.
"The estimated total... from St Regis Hotel Langkawi project (was) overdue to Lada (as of) Dec 31," read the report, tabled in the Dewan Rakyat on Wednesday (Nov 22).
This was among several weaknesses discovered during the audit of Lada, where it was also found that no consideration was received in terms of shares or leasehold land income amounting to RM8.3mil for the Perkampungan Tok Senik Resort project on land that was leased.
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The Auditor-General noted that these weaknesses posed a risk of Lada losing income amounting to RM11.49mil and the leasehold land.
"Land lease agreements should be properly and effectively managed in order to guard the government’s interest in private development projects and to avoid the risk of losing revenue and property," the report read.
The audit also found that Jeti Pelancongan Chenang was inoperable, unmaintained and damaged beyond repair, in breach of the management and operating contract.
"Monitoring and maintenance have not been done to Restoran 1Malaysia, which has ceased operations since 2018 even though the management and operating contract is still effective," the report said, adding that Lada’s assets and investment in these two properties suffered damage and failed to obtain the highest return on investment.
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The report recommended that Lada improve its governance where investments are concerned to ensure that its properties are effectively managed and give the appropriate returns.
The A-G also said effective management and operating contract terms must be enforced and monitored.
The audit was deemed important as RM408.22mil had been approved, and RM255.2mil spent so far, for the implementation of 20 development projects under the 11th and 12th Malaysia Plans to develop tourism infrastructure and public facilities.
