Anti-graft groups urge end to private firms holding public funds

Civil society organisations have renewed calls for systemic changes to how Malaysia handles public funds held by private entities, following mounting concerns over accountability and transparency in revenue collection.

Transparency International and the Centre for Governance and Accountability (C4) have highlighted the risks posed by allowing private firms to maintain control of government money, pointing to the Zetrix situation as evidence of potential vulnerabilities in the current system.

The groups are advocating for the implementation of real-time revenue collection systems that would reduce the window for funds to remain in private custody. Such systems would enable immediate transfer of collected revenues to government accounts, minimising exposure to potential arrears or mismanagement.

Beyond revenue collection, the organisations are also pushing for comprehensive procurement reforms to strengthen oversight mechanisms across government contracting. These measures aim to enhance transparency and reduce opportunities for financial irregularities.

The push for reforms reflects growing pressure on Malaysian authorities to tighten controls over public finances and reinforce safeguards against potential misuse, particularly in arrangements involving private sector intermediaries handling government revenue.