KUALA LUMPUR (Feb 23): An audit into Mimos Bhd has revealed that the agency spent RM28.13 million between December 2023 and March 2025 without prior approval from the relevant project committees.

Mimos is the national applied research and development centre under the Ministry of Science, Technology and Innovation (Mosti).

According to the latest Auditor General's Report released on Monday, the funds were disbursed before obtaining authorisation from the Steering Committee (or Jawatankuasa Pemandu/JKP) and Technical Committee (or Jawatankuasa Teknikal/JKT) — committees established on Jan 29, 2024. 

"This audit to assess whether the MY Digital ID (MyDID) project expenditure by Mimos amounting to RM28.13 million from the first disbursement of RM80 million was made in an orderly manner in accordance with the governance and scope of the agreement," read the report.

The audit scope is from July 2023 to March 2025, and carried out at Mimos and the National Cyber Security Agency (NACSA), the National Security Council, the Prime Minister's Department as well as via engagement with the Home Ministry and Mosti.

The audit found that Mimos had presented the project expenditure plan during the JKT IDN (National Digital Identity Project) meeting on Feb 2, 2024. 

The meeting agreed that a fresh application for the value study laboratory should be made due to a change in the project scope. 

Subsequently, on Feb 19, 2024, the JKP IDN meeting agreed that Mimos should submit detailed project specifications to the Home Ministry for the value study laboratory application.

Despite this, Mimos proceeded to spend RM28.13 million for the period from December 2023 to March 2025 without prior approval from the JKT and JKP — the committees appointed on Jan 29, 2024, as stipulated in a letter dated Dec 12, 2023.

A further audit review revealed that the expenditure was later verified on Oct 25, 2024, by a different JKP IDN committee appointed by the Home Ministry in 2021 under the previous governance structure. 

However, this committee was not the one authorised under the Dec 12, 2023 directive. The 2021 committee was subsequently dissolved after the meeting that confirmed Mimos' expenditure.

The review also found that no supplementary agreement was made to cancel or amend Preamble Clause B, Appendix C of the MyDID project agreement, which requires approval from the project’s JKT and JKP before any implementation or expenditure.

In its response, Mimos stated that the JKT IDN meeting on Feb 2, 2024 only took note of the expenditure plan presented and did not formally confirm it. 

Meanwhile, the JKP IDN meeting on Feb 19, 2024 decided that the JKT should reconvene to thoroughly review Mimos' planning and expenditure, and to ensure proper payment governance before JKP confirmation.

Discussions on Aug 6, 2024 regarding the status of the MyDID project concluded that the original JKT and JKP (prior to the new governance structure) were responsible for examining and confirming expenditures to close Mimos' account, before submitting to the National Security Council.

The Auditor General’s Report concluded that the project was implemented without proper governance and mandate, in contravention of the Home Ministry letter dated Dec 12, 2023, which required Mimos to obtain JKT and JKP approval before any implementation or expenditure. 

Mimos also failed to comply with instructions to seek such approvals as soon as procurement was carried out, as outlined in a letter dated Dec 18, 2023.

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