JAN vs PwC: Don’t Undermine Public Institutions, Says Umno Batu Chief

KUALA LUMPUR — The government must not erode public confidence in its own institutions by appearing to place greater reliance on external auditors than the National Audit Department (JAN), said Umno Batu division chief Gulam Muszaffar.

He said the issue warranted public scrutiny following former Auditor-General Tan Sri Madinah Mohamad’s revelation that she was denied the opportunity to attend and present her views to the Royal Commission of Inquiry (RCI) into Lembaga Tabung Haji (TH).

Madinah had previously headed JAN, which is responsible for auditing government agencies and ensuring that public-sector financial management complies with established standards of transparency, accountability and integrity.

Gulam said Madinah’s exclusion was particularly concerning given that JAN had previously issued clean audit opinions in its audits of TH.

“The explanation by Tan Sri Madinah, as a former Auditor-General who led JAN, raises serious questions about why the department’s position was not given due consideration in the TH RCI,” he said in a statement today.

He questioned whether the government had effectively placed greater confidence in the findings of international audit firm PricewaterhouseCoopers (PwC) than its own national audit institution.

According to Gulam, the PwC report appeared to have been treated as a key basis for substantiating allegations of financial misconduct or “sakau” involving TH.

“Is the government now more inclined to believe PwC’s report than the findings of its own government audit institution?

“If so, this raises a much bigger question about the confidence being placed in our own public institutions,” he said.

Gulam also questioned the cost of PwC’s involvement in the RCI, saying the public had a right to know how much was paid for the audit report, particularly as public funds were involved.

“PwC is a global audit firm operating on a commercial basis. Its services are not free, and the public deserves transparency over the amount spent on the report commissioned for the TH RCI.

“To date, there has been no clear disclosure of the actual cost. I believe the amount could run into millions of ringgit. Nothing is free with PwC,” he said.

Gulam stressed that his criticism was not directed at external auditors or international expertise, but at the potential erosion of confidence in Malaysia’s own institutions.

He warned that repeatedly dismissing or sidelining government agencies whenever their findings did not fit a particular political narrative could have serious long-term consequences.

“If we no longer trust our own institutions, we will eventually destroy them from within while opening the door to an agenda driven by external and capitalist interests,” he said.

He said the same principle could eventually affect institutions such as the Attorney-General’s Chambers, Royal Malaysia Police, judiciary, Malaysian Anti-Corruption Commission, Election Commission, Bank Negara Malaysia, ministries and other government agencies.

“What happens when the findings, decisions and professional assessments of these institutions are only accepted when they favour a particular political interest?

“Who will we trust then?

“The collapse of public confidence in government institutions would be inevitable if this becomes the norm,” he said.

Gulam said the credibility of Malaysia’s public institutions must be protected by respecting their professionalism, independence and integrity, regardless of whether their findings were politically convenient.

“Public institutions must not be weakened simply because their findings do not support a particular narrative,” he said.