The government will respond to an audit which found millions of ringgit in aid money for victims of the 2004 tsunami was badly managed, a minister said today.

"We will take action," Nazri Aziz, a minister in the prime minister's department, was quoted as saying by the state Bernama news agency.

"This is the first time we get to know about this thing happening."

In his annual report presented last week, auditor-general Ambrin Buang said the money, handled by the treasury's National Disaster Relief Fund, took too long to reach needy survivors.

Construction standards followed in the repair or building of houses in the tsunami-affected states of northern Penang and Kedah, which cost RM9.83 million, were also found to be shoddy.

Ambrin also said RM9.84 million in aid for fishermen to repair and purchase nets, boats and motors had been mismanaged.

State governments blamed

Nazri said the government would discuss the report findings on Wednesday at its regular cabinet meeting but pointed the finger at state governments for the poor outcome, saying they were responsible for managing the money.

"The money was disbursed according to the report by the state governments and district offices which made the assessment in their areas," he said, adding the federal government had done its part.

Sixty-eight people were killed in Malaysia in the December 26, 2004 tsunami, most of them on Penang.

Malaysians donated over RM80 million to the National Disaster Relief Fund, which distributed compensation to hundreds of people whose houses or fishing boats were destroyed or damaged by the giant waves.