The Defence Ministry continued to pay pension to army veterans even after they died, causing the government to lose almost RM12 million, according to the Auditor-General's Report 2013.

The Veteran Affairs Department paid out RM11.94 million in pension for 3,786 veterans who had died between 2011 and 2013.

Upon realising the mistake, the department moved to recover the amount, but has recovered RM1.69 million or 14.2 percent so far.

The third series of the audit report, the last for this year, was tabled in Parliament this morning.