Auditor-General’s Report (LKAN) 2/2026 talk say total RM2.55 million from Light Dues Fund (KWDA) and Marine Trade Centre Fund (KWPPL) was spent on allowances and facilities in 2025 without valid authority.
Out of that amount, RM2.31 million come from KWDA funds, while RM239,784 come from KWPPL.
The report talk say audit of KWDA expenditure in 2025 found say RM2.31 million was paid as allowances and facilities to KWDA Board and officers of Malaysian Marine Department (JLM) without valid authority.
The payments be part of total expenditure of KWDA and KWPPL, which reach RM131.98 million and RM6.77 million respectively in 2025.
As at Dec 31, 2025, KWDA get balance of RM273.12 million, with receipts totalling RM103.48 million during the year, while KWPPL record balance of RM24.72 million with receipts of RM5.81 million.
The report state say the RM2.55 million in allowances and facilities no dey provided for under Federation Light Dues Act 1953 (Act 250), Merchant Shipping Ordinance 1952 and Financial Procedure Act 1957 (Act 61).
For response dated July 2, 2026, JLM explain say KWDA Board and KWPPL Committee be two separate entities wey dem establish under different provisions and regulations, so payment of allowances follow rules and decisions wey dey in force for each entity.
JLM also inform say KWDA Board don approve Lighthouse Board Regulations 2016, which stipulate fixed allowances and facilities for Chairman and Board members as dem dey carry out their functions and responsibilities under Act 250.
According to JLM, Management Representative, Secretary, Chief Collector, Meeting Secretariat and Operations Officer also get entitlement to allowances and facilities at approved rates.
Officers wey get direct interest no dey involved in consideration process, while decisions dem make collectively.
But the Audit conclude say KWDA and KWPPL be public funds, and how dem use am dey subject to laws governing each fund, Act 61 and financial regulations wey dey in force.
So, KWDA Board and KWPPL Committee no get valid authority to approve payment of the RM2.55 million in allowances and facilities.
LKAN also state say Act 61 stipulate say for matters wey no dey specifically provided for, approval for payments dey subject to Minister‘s jurisdiction.
