A-G's Report: PR1MA recorded losses of RM257mil in 2022

PETALING JAYA: PR1MA Corporation Malaysia (PR1MA) recorded a net loss amounting to RM257mil in 2022, according to the Auditor-General's report.

The Auditor-General's Report on Federal Agencies 2022 released on Wednesday (March 6) added that PR1MA also recorded liabilities of more than RM5bil in 2022.

It also said that the Federal Land Development Authority (Felda) and PR1MA Malaysia are facing ongoing business issues based on their level of debt and dependence on government assistance, whether in the form of grants, loans or guarantees.

The report - which was presented in Parliament on Wednesday (March 6) - also includes the Armed Forces Fund Board (LTAT), related to the clarification of investment values in two subsidiary companies and the payment of dividends based on non-cash profits to contributors.

It also raised concerns about the government housing agency’s ability to repay its Islamic Medium Term Note Loan Repayment (Sukuk Tranche 2) based on agency's cash and cash equivalent balance as of Dec 31, 2022.

"The Sukuk loan balances amounted to RM3.792bil (2021:RM4.542 billion), it needs to be repaid by 2027. Based on PR1MA’s cash and cash equivalents position as of Dec 31, 2022, it amounted to RM0.428bil, hence it will face difficulties in making the repayment for Sukuk Tranche 2,” the report said.

It also proposed recommendations for PR1MA to reassess its development strategy for residential and commercial projects based on current needs and market conditions to ensure better marketability of completed residential and commercial units and achieve the development objectives of PR1MA projects.

The report also recommended that PR1Ma to ensure cash flow projections from the sales of residential and commercial units can be achieved to finance operational activities and settle the payment of Sukuk Tranche 2 amounting to RM1.750bil, which will mature in October of this year,” it added.