The Public Accounts Committee (PAC) is toothless because nobody fears any recommendations the committee makes, as is seen after going through the Auditor General's Report, 2012 Pakatan Rakyat said today.

NONEA higher committee with enforcement powers therefore needs to be established to take stern action on discrepancies found in the audit report, DAP secretary-general Lim Guan Eng said.

"This committee should consist of the deputy prime minister, the Opposition Leader and the auditor-general," Lim told reporters at a press conference in the Parliament lobby.

He said Pakatan would write an official letter to Prime Minister Najib Abdul Razak to outline its suggestion on forming such a committee.

"Something needs to be done, otherwise the allegations such as what was revealed in the Auditor General's report will be repeated again next year," Lim pointed out.

He opined that the financial discrepancy highlighted in the 2012 report was "worse" than the previous year.

"It's getting worse. And I believe not only the people, but even civil servants are unhappy with the way the money is being wasted," Lim said.

PKR deputy president Azmin Ali and PAS vice president Mahfuz Omar also attended the press conference.