KUALA LUMPUR, Feb 3 — Every year, governments collect billions in tax revenue from the public. This money is meant to fund essential services — healthcare, education, infrastructure, and other public programmes.

But what happens if the money is mismanaged?

This is where the Public Accounts Committee (PAC) steps in.

What is PAC?

PAC is a parliamentary committee formed specifically to examine reports from the Auditor-General (A-G) and scrutinise government spending.

Acting as Parliament’s financial watchdog, PAC ensures that taxpayer money is spent responsibly and in-line with the approved national budget.

This tradition comes from the Westminster parliamentary system, where public audits are closely followed up to ensure financial accountability.

The practice of financial oversight is common in many democratic nations, where PAC is typically chaired by a member of the Opposition, ensuring that government spending is scrutinised without bias.

PAC is not just a formality — it is a crucial institution that holds the government accountable for its spending. If public funds are misused or unaccounted for, the committee has the power to demand answers through conducting independent investigations.

Now, let’s take a closer look at how PAC operates and why it plays such a vital role in governance.

Who makes up the committee?

At the start of each new Parliament, the House of Representatives (Dewan Rakyat) appoints a chairman and vice-chairman to lead PAC.

In many Commonwealth countries, PAC is traditionally chaired by a member of the Opposition — this practice is meant to reinforce independence and prevent government bias in financial oversight.

Alongside them, between six and 12 members are nominated by the Committee of Selection.

If both the chairman and vice-chairman are unavailable — whether due to illness or other reasons — the members will elect one among themselves to temporarily lead the session.

However, there is one strict rule: Ministers cannot be part of PAC. This ensures that those responsible for spending public money do not oversee themselves, keeping the committee impartial.

What does PAC do?

PAC’s key role is to hold the government accountable for how it spends public money. Specifically, it examines:

• Government accounts
• Public authorities and organisations managing government money
• A-G reports, analysing findings on financial management, as required under Article 107 of the Federal Constitution
• Other financial matters PAC considers important or that Parliament asks it to investigate

What powers does PAC have?

PAC has significant powers to make sure its investigations are conducted effectively. It can:

• Summon individuals for questioning, including ministers, civil servants, members of the public and other officials
• Request documents, reports, and records related to government spending
• Submit a report with its findings and recommendations after reviewing the government budget audit

Once PAC publishes its findings, the government must report back to Parliament within a specified period, detailing what actions have been taken based on the committee’s recommendations.

Can public servants refuse PAC’s orders?

Failure in adhering to the order of PAC to attend its proceedings is an offence under Section 9 of the Houses of Parliament (Privileges and Powers) Act 1952 (Act 347).

According to the Act, the House may punish for contempt by fine not exceeding RM1,000 as provided by the Standing Orders of by Act 347.

If the fine is not paid immediately by the offender, they shall be committed to the custody of the keeper of any gaol or an officer of the House, in such place as it may direct, until payment is made or until the House is dissolved or prorogued.

What are some of cases that PAC has investigated in the past?

2025

• Joint privatisation of Khazanah Nasional Bhd, Malaysia Airports Holdings Bhd (MAHB), Employees Provident Fund (EPF), New York-based Global Infrastructure Partners (GIP) and the Abu Dhabi Investment Authority — investigation into the privatisation deal
• Impact of private healthcare price increases on public hospitals
• Government’s procurement of electric trains through a RM10.7 billion leasing agreement with China

2024

• National Integrated Immigration System (NIISe) Project — investigation into the system’s implementation and execution.
• Federal Land Consolidation and Rehabilitation Authority (Felcra) Case — arrest of officials linked to financial irregularities.
• National Paddy Cultivation Programme — scrutiny of subsidies, food security measures, and support for rice farmers.
• National Water Services Commission (SPAN) Operations — assessment of water service management and distribution.
• Tax Refund Delays — examination of delays in processing tax refunds and their impact on businesses and individuals.
• Issues concerning the Armed Forces Fund Board (LTAT)

2023

• Littoral Combat Ship (LCS) Procurement Scandal — investigation into cost overruns and project delays in the defense sector.
• Automated Enforcement System (AES) Implementation — review of traffic enforcement system contracts and effectiveness.
• Covid-19 Outbreak Management Report: Expired Vaccines, Unusable and Surplus Personal Ventilator Equipment and Excess of Personal Protective Equipment (PPE) under the Health Ministry
• Human Resource Development Corporation’s (HRD Corp) management of funds and training programmes

2015

• 1Malaysia Development Berhad (1MDB) Scandal — investigation into mismanagement and corruption involving the state investment fund.

2012

• National Feedlot Corporation (NFC) Scandal — misuse of RM250 million in government loans intended for cattle farming.

2009

• Port Klang Free Zone (PKFZ) Scandal — a RM1.96 billion project ballooned to over RM12 billion due to mismanagement and corruption.
• Rawang-Ipoh Electrified Double Tracking Project — scrutiny of cost increases and project delays.