KUALA LUMPUR, Jul 4 — Mass Rapid Transit Corporation (MRT Corp) still has not finalised the accounts for the MRT1 project it completed and launched seven years ago, according to the Auditor-General’s Report (LKAN) 2/2024.

The A-G said this was due to unresolved discrepancies flagged in previous audits as well as incomplete documentation submitted by its execution partner.

"The management of MRT1 development activities is less efficient. The final account for MRT1 has not yet been closed even though the project has been completed and fully operational since 2017,” the report read.

From 2013 until 2020, MRT Corp did not audit the repayment costs to its partner, which were supposed to be reviewed every six months according to the project implementation partnership agreement.

This oversight allowed the project execution partner to receive excessive sums for direct costs and overhead, which went undetected for years.

Audits conducted from 2020 to 2023 eventually identified the overpayments, which were subsequently returned.

The report, however, commended the management and activities of the MRT2 project.

It stated that overall, the management of MRT Corp was satisfactory despite its financial instability, as it relies on government funds to build rail infrastructure.

The report also recommended that MRT Corp enhance corporate governance practices, including establishing a more rigorous audit schedule to prevent future discrepancies.

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