Four govt-owned organisations flagged

PETALING JAYA: Four government-owned organisations, including Mara Incorporated Sdn Bhd (Mara Inc), have been flagged for their unstable financial positions due to inefficient business activities, according to the Auditor-General’s Report 2/2024.

The others identified were Mass Rapid Transit Corporation Sdn Bhd, International Islamic University Malaysia and i2M Ventures Sdn Bhd.

“The inefficient implementation of activities of Mara Inc has resulted in accumulated losses of RM286.3mil.

“Delays in loans arrears from Majlis Amanah Rakyat (Mara) have also affected the net current liability position of the company.

“These conditions have rendered Mara Inc unable to pay dividends to shareholders since 2014,” said the report, which was released yesterday.

It was also found that only RM2.88mil in dividends were paid by Mara Inc to Mara in 2012 and 2013.

In response to the Auditor-General, Mara Inc said the drop of earnings in 2021 was due to the movement control order while the increase in earnings in 2022 was due to the return of its operation as usual.

“The Covid-19 pandemic has left a serious impact on hotel and student lodging industry players, and directly impacted the financial flow of the company as well as an indirect impact on the increase in shareholders’ deficit.

“The cash flow position in 2023 is also higher compared with 2022,” said Mara Inc.

Mara Inc’s portfolio includes three local properties and six overseas – four in the United Kingdom and two in Australia.

It reported an equity deficit of RM115.73mil with current liabilities standing at RM234.96mil.

According to the report, Mara Inc’s property operations management was found to be inefficient due to incomplete document submissions related to properties.

Five out of nine of its corporate governance elements were not fully practised.

The Rural and Regional Development Ministry and Mara were urged to increase the monitoring of its subsidiaries, such as Mara Corp and Mara Inc.