FINANCIAL SCRUTINY IN PARLIAMENT
STRENGTHENING ACCOUNTABILITY AND TRANSPARENCY
Hon. Azli Yusof, MP is a Member of the Parliament of Malaysia and a Member of the Public Accounts Committee.
Parliamentary reforms in Malaysia through the Public Accounts Committee (PAC). Introduction The Malaysian Public Accounts Committee (PAC) plays a crucial role in ensuring accountability and transparency in the management of public funds. More than any parliamentary oversight body, it serves as a cornerstone of good governance, safeguarding the efficient and beneficial use of taxpayer money. Recent reforms have significantly enhanced the PAC's independence and effectiveness, restoring public trust and strengthening transparency and accountability in government spending. This article examines the PAC's evolution, key successes and the challenges it faces in meeting Malaysia's increasing demands for transparency and accountability. The Role of the PAC in Malaysia The PAC serves as Parliament’s financial watchdog, scrutinizing government expenditures to ensure they are managed responsibly, efficiently and in compliance with financial regulations. One of our key responsibilities is to examine the Auditor-General’s Reports and investigate any discrepancies, inefficiencies or potential mismanagement. Unlike audit institutions, the PAC does not directly conduct audits. Instead, PAC review audit findings, summon government agencies for explanations and ensure that appropriate corrective actions are taken. PAC work goes beyond mere examination - it holds agencies accountable, ensuring that lapses in financial governance do not go unchecked. One of the defining characteristics of the PAC is its bipartisan nature. It consists of Members from
both the ruling government and the opposition, which is essential in maintaining impartial oversight. The appointment of an opposition Member of Parliament as the PAC Chairperson - a key reform introduced after the 14th General Election (GE14) in 2018 - was a significant step towards reinforcing this neutrality. However, it is not without its challenges. Political pressures, bureaucratic resistance and resource constraints often complicate the PAC work. Yet, the PAC remains steadfast in its mission: ensuring that all money spent by the government serves its intended purpose. Early Years of PAC: Limitations and Political Control For many years, the PAC was perceived as a limited force in financial oversight. Its effectiveness was often constrained by political influences, particularly because its Chairperson was traditionally from the ruling party. This created scepticism about whether the Committee could truly hold the government accountable. During these years, the PAC’s role was largely procedural, with little enforcement power. Investigations were largely reactive triggered by the AuditorGeneral’s reports - rather than proactive, and the Committee’s recommendations often lacked strong follow-up mechanisms. However, the landscape began to shift following mounting public demand for greater transparency
14 | The Parliamentarian | 2025: Issue Two | Over 100 years of publishing
and accountability, particularly after high-profile financial scandals shook the nation. Reforms and the Call for Greater Independence The most significant reforms in the PAC’s history took place after GE14 in 2018. Recognising the need for greater independence, the government implemented a groundbreaking change: appointing an opposition MP as the PAC Chairperson. This move was meant to depoliticize the PAC and ensure its impartiality in scrutinizing government spending. Since then, the leadership of the PAC has seen multiple transitions, each reinforcing the principle that financial oversight should be free from political bias. The PAC is currently chaired by a Member of the opposition, with a Member of the ruling coalition serving as the Deputy Chair and consisting of eight Members from the government and four from the opposition, ensuring balanced representation.
“More than any parliamentary oversight body, the Public Accounts Committee serves as a cornerstone of good governance, safeguarding the efficient and beneficial use of taxpayer money.”