According to the Auditor-General’s Report on Federal Agencies 2022, five federal agencies have reported deficits totaling RM3.115 billion. These agencies include the Federal Land Development Authority (Felda), the Electric Industry Fund Group (KWIE), the Railway Asset Corporation (RAC), the National Trust Fund Group (KWAN), and the Kuala Lumpur City Hall (DBKL).
The report highlighted that Felda’s expenses in 2022 amounted to RM1.947 billion, resulting in a deficit. It mentioned that the expenditure within Felda exceeded the income, primarily due to an increase in the impairment of value, resulting in a profit loss of RM1.005 billion.
The reasons for this deficit were attributed to the impairment of investment value, amounts owed by subsidiary companies, and settler debts, according to the report.
On the other hand, KWIE’s expenditure in 2022 was RM1.015 billion, surpassing its income and creating a deficit of RM0.990 billion. This was mainly due to the lack of revenue from excess electricity tariff rebates and charges, as well as increased fuel costs.
Furthermore, KWIE’s funds are used to cover rebate expenses as a mitigation plan to minimize the impact of electricity tariffs on consumers, the report stated. The Railway Asset Corporation (RAC) also reported a deficit of RM0.484 billion in 2022, as its expenditure of RM0.641 billion exceeded its income.
This was primarily attributed to a decrease in the sale of used goods during the year, resulting in financial losses for the agency.
More information is expected to be released in the report regarding the financial status of these federal agencies.
