Also, according to the Auditor-General's Report 2013, the 1Bestari Net project, which also includes a virtual learning environment (VLE), that cost the bulk of the spending, is also rarely used by teachers and students.
Under the contract, 9,191 schools were to be supplied with a broadband network with a minimum speed of 4Mbps and up to 20Mbps.
A small number of schools, 698 in total, were to be equipped with broadband that has a minimum speed of 2Mbps and up to 4Mbps.
However, an audit of 46 schools found 41 of them or 89.1 percent, only obtained speeds between 0.2Mbps to 3.62 Mbps.
"The broadband speed performance is too slow to support VLE if it involves 30 to 40 users at a time," it said.
In another feedback survey of 491 schools, it found 297 schools (68.9 percent) had a speed below the required 4-10Mbps and another 48 schools (80 percent) were under the required 2-4Mbps speed.
Only 146 (29.4 percent) of schools achieved their required speed.
According to the breakdown of the RM663 million contract granted to YTL Communications Sdn Bhd, a total of RM87.32 million was allocated for broadband with speeds of 4-10Mbps and RM5.29 million for speeds of 2-4Mbps.
A total of RM250.5 million is also allocated for the VLE service and another RM262.81 million is to maintain and management the VLE applications in an online learning platform.
However, the audit report found less than a third of schools used the VLE platform in March this year.
"In the same period, the audit analysis found the usage of VLE based on students', teachers' and parents' logins in schools throughout Malaysia is very low," it said.
According to the report's statistics, during that period, student logins was at 0.17 to 0.63 percent, teachers at 0.57 to 4.69 percent and parents at 0.01 to 0.03 percent.
It also said Penang Hospital (HPP) lost RM240,000 worth of medicine stocks due to theft.
In November 2011, 68 medicine stocks amounting to RM1.21 million were stolen from the stores of the HKL’s neuroscience as well as urology and nephrology pharmacies.
A police report on the incident was lodged on Dec 27, 2011.
Part of the stolen medicine stocks, worth RM740,000, was found in January 2012.
Based on investigation conducted by HKL, the theft was committed by someone from the inside who constantly dealt with the staff of the store and as such, knows the weaknesses in the store management.
The case was decided to be written-off while disciplinary action will only be taken against civil servants after police investigations are completes, the Audit Report noted.
In December 2013, a Shimadzu control panel was stolen from the radiography room of the diagnostic imagery department of HKL.
The control panel was one of the components of the general x-ray equipment, which is worth RM300,000.
“As the control panel had been stolen, the general x-ray equipment can no longer be used,” the Audit Report states.
It also noted how there were recurring cases of four types of assets, namely air-conditioning compressors, syringe pump, physiologic monitoring system and pulse oxymetres, being lost.
A total of 97 units of these assets, worth RM610,000, were lost.
Based on safety inspection reports prepared by HKL’s security division, the urology and nephrology department as well as the physiotherapy department, outpatient treatment centre, paediatric institute and forensics institute are high risk areas where air conditioning compressors constantly go missing.
As for the theft that occurred in Penang Hospital, 694 medicine stocks worth RM242,125 were stolen in February 2013.
A final report was issued in July 2013 and the hospital is awaiting further action from the relevant authorities.
The third series of the report tabled in Parliament today says the officer made off with RM995,031 in unclaimed money through falsification of documents, which was only discovered in March 2011.
"Legal action has yet to be taken against an officer who committed fraud and misappropriation between Aug 27, 2008, and Dec 21, 2010, involving RM995,031 in unclaimed money, despite police reports lodged on March 3, 2011, and March 10, 2011," it states.
A report was also lodged with the Malaysian Anti-Corruption Commission (MACC) on March 11, 2011.
JANM is responsible for collecting and overseeing money that has not been claimed in bank accounts for seven years, or funds that are meant to be disbursed to recipients but went unclaimed for more than a year.
The inaction is despite a June 22, 2012, letter from the police Commercial Crime Investigation Department, which said it had recommended to the Attorney-General's Chambers that the officer be charged under Section 477A of the Penal Code.
The section concerns the falsification of accounts and provides punishment of up to seven years' jail, a fine, or both upon conviction.
An investigation committee also found that the officer, a Grade N17 administrative clerk attached with JANM's Trust and Securities Management Division (BPAS), was suspected of being directly responsible for the missing funds.
The investigation committee recommended that the officer be sacked and a surcharge (fine) be imposed on the suspect for the lost funds.
However, the audit report found the officer was only transferred to the Accounting Development and Management Division, effective Jan 9, 2012.
According to the breakdown, the officer had falsified supporting documents for RM827,781.46 in unclaimed money, which were considered as "improper payment".
Another RM106,955.35 were disbursed to various names, but with to the same bank account number.
Also, RM60,294.50 could not be established as to whether the sum was made of genuine payments.
The entire amount was transferred electronically.
In March 2013, the audit report said the Finance Ministry had agreed to write off the RM995,031.41 lost but ordered that disciplinary action and a surcharge be imposed on the officer.
The audit report attributed the incident took place because BPAS had failed to abide by certain safeguards, such as requiring proper verification of documents.
"AS a result, the government lost almost RM2 million (the missing RM995,031.41 and another RM995,031.41 to write off the loss).
"The officer who committed the fraud and misappropriation should also be imposed a sucharge under Section 18(b) of the Financial Procedure Act 1957," it said.
According to this section, the government can impose a fine on the officer, up to a maximum sum matching the total lost funds.
According to the Auditor-General's Report 2013, the Veteran Affairs Department (JHEV) had paid out RM11.94 million in pension for 3,786 veterans who had passed away between 2011 and 2013.
Upon realising the mistake, the department had moved to recover the amount but had thus far only managed to get back RM1.69 million or 14.2 percent.
The third series of the audit report, the last for this year, was tabled in Parliament this morning.
"JHEV should continuously conduct checks on the latest status of pension recipients with the National Registration Department (NRD) to avoid payment to pension recipients who have died," said the report.
In its reply dated Sept 22, JHEV said the department had previously relied on the next of kin to inform whether a pension recipient had passed away.
"If there is no official notification, then the pension will continue to be paid," it said.
However, JHEV said it has tasked 13 officers to update the data of some 10,000 recipients and assured that it will be matched with the NRD data.
It added the updating process is expected to be completed by 2015.
The audit report also advised JHEV to come up with a clearer veteran benefit scheme to facilitate applications and to revise its assistance to an amount that matches present cost of living.
This is after a survey of some veterans found that they were living in poverty.