PETALING JAYA: The National Audit Report has revealed several weaknesses in the management of Malaysia Venture Capital Management Bhd (Mavcap).
In a report, it said Mavcap, which is wholly owned by the Government, had failed to comply with guidelines/terms and conditions of agreements and had poorly monitored the performance of fund managers and investment companies.
“Investment procedures were not carried out according to the Investment Operational and Process Manual,” it said, adding that high turnover of staff was one of the factors that contributed to improper management of investments.
The report also stated that training of venture capital entrepreneurs was not planned or carried out according to the established mission as well as inadequate monitoring on the management of subsidiaries.
In this regard, it recommended that the board of directors and management of Mavcap and the Finance Ministry urgently finalise updating the Investment Operational and Process Manual to ensure efficient management of investments.
It also suggested that management closely monitor the performance of fund managers to get the best investment returns.
“The board should establish a clear policy and review the requirements and appropriateness of venture capital training to ensure Mavcap achieve its mission of training and creating entrepreneurs and professional manpower in the field of ICT (information and communications technology),” it said.
“The board should ensure a comprehensive yearly corporate plan and implementation strategies are prepared to achieve the mission and vision of the company besides safeguarding the interest of the Government as a shareholder of the company.”
It further added that the Finance Ministry needed to review or determine the status of Cradle Fund Sdn Bhd and its relationship with Mavcap.
This is besides establishing a mechanism to monitor the management of activities and finances of Cradle Fund.
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