KUALA LUMPUR: Mara Incorporated Sdn Bhd (Mara Inc) needs to continuously review and improve its property leasing standard operating procedures (SOP) to ensure it meets current needs says The Public Accounts Committee (PAC).
Its chairman, Datuk Mas Ermieyati Samsudin said this in a statement on Wednesday (March 5),
"The PAC also took note of Mara Inc's actions to draft a comprehensive policy regarding property valuation and reminds that the policy must always be adhered to and updated after receiving approval from the Mara Inc board of directors," she said.
Mas Ermieyati said Mara Inc also informed PAC that all approvals for the company's investment activities are based on its investment policy, and will only focus on domestic businesses and projects.
"The PAC once again emphasises the need for scrutiny, compliance, and improvements to existing guidelines and policies to ensure that a property scandal involving Mara Inc does not recur in the future."
She also recommended Mara Inc to ensure that all debts are paid in an orderly manner per the debt settlement plan that has been established.
"Regarding the recommendation on the ownership of Premiera Hotel & Resorts Sdn Bhd (PHKL), the committee is of the view that Mara Inc must ensure that the recovery plan for the Mara Inc Group, which also includes a recovery strategy for PHKL, is implemented with the aim of reducing the accumulated loss of RM84.1mil in 2023 to an accumulated profit of RM0.8mil," she said.
In Nov last year, the PAC found that Mara Inc purchased overvalued properties in London and Australia in 2013 and 2014.
The properties include Dudley International House, an eight-floor student dormitory at 51 Queen Street, and 333 Exhibition Street in Melbourne, purchased in 2013.
The two properties were purchased for a total of RM72.64mil but are currently valued at only RM47.45mil, according to the PAC.
Another property was Beaumont House in London, purchased in 2014 for RM78.53mil, but currently valued at RM74.1mil.
