The Auditor-General’s (AG) Report 1/2026 reveals that MIMOS Berhad spent RM28.13 million without approval during the early implementation of the MyDigital ID project. The findings, tabled in the Dewan Rakyat, point to significant weaknesses in expenditure management and internal controls under MIMOS Berhad, which was appointed as the implementing agency.
MyDigital ID serves as a digital self-identification and authentication platform designed for use across both public and private sectors, enabling individuals to verify their identities for online transactions. The government appointed MIMOS to lead the project in July 2023 under the supervision of the Home Ministry and the National Registration Department, with RM80 million in development allocations channelled to the agency.
According to the report, MIMOS spent the RM28.13 million across 11 project sub-scopes that either exceeded approved allocations or had no allocation at all. It used RM4.08 million despite insufficient or absent disbursements, while it overspent a further RM70,000 beyond the approved cost for one sub-scope. The audit says this reflects weak internal controls and non-compliance with established governance procedures.
The report also found that MIMOS used RM14.09 million in development funds to cover operating expenses, including staff emoluments, resource costs, medical facilities, and office equipment. Of this amount, it allocated RM13.10 million to emoluments and RM0.85 million to resource-related expenses. The Auditor-General says this contravenes the 12th Malaysia Plan guidelines, which prohibit the use of development allocations for such purposes.
Additionally, the audit highlighted shortcomings in project governance. It found that the governance structure did not function as intended, with no formal presentations made during monitoring meetings regarding expenditure approvals or implementation status. The absence of proper oversight mechanisms raised concerns over accountability and transparency.
The audit also flagged procurement issues, noting that MIMOS purchased security cages and door access systems without Value Assessment Lab approval. It adds that the equipment remains unused, resulting in wasted funds and reflecting poor asset control.
As the implementing agency, MIMOS must provide detailed expenditure reports to the Home Ministry for monitoring and verification by a designated committee. The audit stresses that its board members must exercise fiduciary duties to ensure strict compliance with governance frameworks and internal controls, including conditions imposed on the management of MyDigital ID Sdn Bhd.
Overall, the AG concluded that the project demonstrated weaknesses in expenditure management and internal controls during its early phase. The report recommended that MIMOS strengthen oversight mechanisms to ensure all spending receives proper approval and adheres to the approved cost structure moving forward.
(Source: FMT)
