Malaysia will from next year put in place a new system to rein in wasteful government spending, a top official said yesterday after revealing million of dollars had been spent unnecessarily.

Auditor-General Ambrin Buang said the government would introduce an "accountability index" in 2008 for the public sector.

"The accountability index is a very objective assessment of the performance of a ministry...with respect to financial management," he told reporters in Kuala Lumpur yesterday.

Ambrin this week released a report showing the youth and sports ministry had paid RM8.39 million (US$2.4 million) more than market price for 13 items included in its budget - everything from screwdrivers to crane towers.

Greater transparency

The auditor-general said he hoped the new system would lead to greater transparency in public procurement, and pledged that the government would probe any eventual abuses.

"If people have other intentions and if they want to exploit the situation, let the appropriate bodies handle the investigation," he said.

"If there are cases of fraud or corruption, let them handle it."

Prime Minister Abdullah Ahmad Badawi was elected in 2004 in a landslide vote on the back of an anti-graft campaign, but the opposition and anti-corruption watchdogs say progress has been slow, with few meaningful reforms.