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State customs overpaid RM41.4m in LPG subsidies in three years

State customs overpaid RM41.4m in LPG subsidies in three years

KUALA LUMPUR : The state customs has overpaid a total of RM41.4 million in liquefied petroleum gas (LPG) subsidies claim from 2015 to 2017.

According to the activities of the Federal Ministries/Departments 2018 section under the Auditor General’s Report 2018 series 1, the overpayment is due to a claim submitted to the Treasury without the approval of the State Customs Director (PKN).

“The audit interview with Treasury officials found that this was the case because PKN’s approval of late subsidy claims is obtained causing the Treasury to make overdraft payments first without waiting for PKN’s approval,” the report wrote.

Nonetheless, the report revealed that RM39.56 million has been recovered from the supplier companies, with the biggest chunk of RM35.11 million received on Sept 4, 2015.

Meanwhile, no action has yet to be made on the remaining claims equivalent to a combined amount of RM5.94 million.

“To avoid any delay in payment subsidies, confirmation from Royal Malaysian Customs Department (JKDM) will only be made after payment to the company is made,” said the report.

For every claim filed with the Ministry of Finance (MoF) for the current month, the company also needs to send the documents on LPG sales to JKDM for verification, it added.

In the event of a deficiency or excess payment after a JKDM review is made, JKDM will inform to MoF for further action.