What caused delays in government vehicle deliveries by over 500 days?

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Government Vehicle Delivery Delays Attributed to Unspecified Causes, Resulting in Uncollected Penalties

The Auditor-General's Report 2025 (Series 3) has identified significant delays in the delivery of government vehicles under concession agreements, with 6,028 vehicles arriving between one and 508 days past the stipulated 60-working-day limit. Despite these repeated delays, no penalties were imposed on the concession companies responsible. The report also highlights that the federal government incurred additional costs of approximately RM28.79 million by continuing to operate vehicles beyond their lease expiry dates rather than replacing them.
Significant Number of Vehicles Delivered Late

As of December 31, 2024, a substantial quantity of government vehicles, totalling 6,028 units, were delivered significantly behind schedule. These delays ranged from a single day to an extended period of 508 days beyond the contracted 60-working-day delivery timeframe from the order date.
Failure to Impose Penalties for Delays

The audit findings revealed a notable absence of penalty claims being levied against the concession companies for these persistent delivery delays. This lack of enforcement has resulted in an estimated RM54.51 million in uncollected penalties, as noted in the report.
Financial Implications of Extended Vehicle Operation

Instead of timely vehicle replacement, the federal government faced increased expenditure by continuing to operate vehicles with expired lease periods. This practice led to additional costs estimated at around RM28.79 million, further compounding the financial impact of the concession management issues.
Actions Underway to Address Penalties and Review Agreements

In response to these findings, the Ministry of Finance has initiated measures to rectify the situation. A penalty committee and a dedicated working group have been established to review and determine the appropriate penalty claims that should be submitted by the respective ministries. A new concession agreement, CA2, was also signed on January 31, 2022, for a 15-year term commencing July 31, 2022.

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What caused delays in government vehicle deliveries by over 500 days?

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