What AG’s report says on Kelantan

(Harakah Daily) – The Auditor General has rated the Kelantan state government’s financial position in 2010 as satisfactory.

The state saw a revenue increase of RM51.07 million or 52.5 percent, from RM97.23 million in 2009 to RM148.30 million in 2010.

“Analysis of 5 years into the consolidated revenue from 2006 to 2010 shows a dip in 2007 and 2008 and then increase in 2009 and 2010. Cash reserves and investment rose in 2010, with the balance of RM97.23 million in 2009 increasing to RM148.30 million in 2010,” reads the AG’s report released yesterday.

The AG has advised Kelantan to spend prudently without affecting quality of service and development, citing an increase in state debt by RM118.25 million, from RM993.75 million in 2009 to RM1,112 million in 2010.

“The state government must also ensure arrears in revenue are collected and loans repaid according to schedule, and arrears repayment must be collected in full. The debt to Federal government must also be paid according to schedule including delayed repayment,” the report adds.

On the state’s development, the AG notes that the state government underspent for a period of five years utilising only RM715.23 million or 42.1 percent of the total allocation.

As such, the report concludes that the spending and implementation have been “unsatisfactory”.

It however praises financial management of all government agencies in Kelantan, with four state agencies being rated as ‘very good’ and the other 15 as ‘good’.

“This shows an improvement in financial management of the state compared to 2009 where only two agencies were rated as ‘very good’ and 12 as ‘good’,” it added, saying state performance could be improved through financial and management training for state officers.