The Auditor General’s Report (LKAN) 1/2026 has uncovered serious lapses in how Universiti Kebangsaan Malaysia’s (UKM) Centre for Advanced and Professional Education, UKMShape, handled student fees and expenditures for the financial year ending December 31, 2024.
According to Astro Awani, the report reveals millions in fees went unaccounted for, and spending rules were repeatedly ignored.
The report shows that UKMShape collected RM60.77 million in fees from the Master of Education (SPEND) and Postgraduate Diploma in Education (DPLI) programmes, covering 17,193 students. But only RM28.41 million was recorded as university revenue.
The remaining RM32.36 million, which was collected and distributed by Koperasi B-5-1788, was not recognised in UKM’s accounts, creating a major shortfall in the university’s 2024 financial statements.
Compounding the issue, RM50.74 million in fees had been collected by the cooperative without written approval from the university’s Board of Directors, as required under UKM’s constitution.
A cooperation agreement signed in June 2023 also lacked approval from the Board and the Finance Minister, making it non-compliant.
Delays in transferring fees to UKM were widespread. The audit found RM21.02 million was handed over between 31 and 291 days late, and RM5.32 million remained unpaid as of December 31, 2024, with some amounts outstanding for more than three years.
Potential conflicts of interest were also flagged. Five UKM officers held key positions in Koperasi B-5-1788, including chairman, secretary, treasurer, and board members, in violation of the Statutory Bodies (Discipline and Surcharge) Act 2000 (Act 605) and public service conduct rules.
Expenditure practices were equally problematic. RM6.69 million was paid irregularly, including RM5.94 million in commissions to 41 student recruitment agents who were either unauthorised or lacked proper appointment letters.
Other irregularities included RM107,907 in overseas expenses for non-staff, RM35,000 in industrial attachment allowances for ineligible students, a RM200,000 advance without approval, and RM403,500 in hotel and promotion packages procured without going through the Tender Committee.
In response, UKM stated on January 22, 2026, that UKMShape has fully taken over recruitment and fee collection for DPLI Cohort 7, Semester 1 2025/2026, with plans to extend this to SPEND. The university confirmed that accounting adjustments have been made to recognise revenue properly and that debt recovery from the cooperative is underway.
