PAC demands Mara prioritise local investments after overseas property blunders

Malay Mail

KUALA LUMPUR, Nov 26 — The Public Accounts Committee (PAC) has recommended that the Rural and Regional Development Ministry (KKDW), Majlis Amanah Rakyat (Mara), Mara Corporation Sdn. Bhd. (Mara Corp) and Mara Inc align all investment proposals, especially high-value property acquisitions, with government policies and prioritise domestic investments.

“These proposals should prioritise local investments and require prior approval from the Finance Ministry (MoF),” PAC chairman Datuk Seri Mas Ermieyati Samsudin said in a media statement today after the presentation of the Mara Inc management report to the Dewan Rakyat today.

This follows findings, based on three proceedings conducted by PAC on July 30 and Sept 10, that Mara Inc had made overvalued property purchases in London and Melbourne.

Mas Ermieyati said among those who testified were Deputy Auditor-General (Companies) Roslan Abu Bakar, KKDW secretary-general Datuk Muhd Khair Razman Mohamed Annuar, Mara director-general Datuk Seri Azhar Abdul Manaf, Mara Corp Corporate Planning Director Datuk Amir Azhar Ibrahim and Mara Inc chief executive officer Mohd Fadzil Mohd Idris.

She said the purchases involved Dudley International House at 51 Queen Street and 333 Exhibition Street in Melbourne in 2013, followed by Beaumont House in London in 2014, adding that these transactions were not approved by the MoF.

According to the statement, KKDW had appealed, and the matter was subsequently presented to the National Economic Council, which granted approval in 2013.

Mas Ermieyati said the overvalued property purchase case in Melbourne had been investigated by the Malaysian Anti-Corruption Commission (MACC) and is still under trial in court.

She said PAC is also of the view that Mara Inc’s decision to seek a second debt-to-equity conversion for Premiera Hotel after the first attempt in 2015 must not be repeated in the future.

“Therefore, PAC recommends that KKDW, Mara, Mara Corp, and Mara Inc ensure Premiera Hotel has a clear plan for ensuring that any future debt-to-equity conversions can provide returns and help sustain the company,” Mas Ermieyati added.

The PAC further recommended that KKDW, Mara, and Mara Inc strengthen their financial management and investment policies, including the development of clear guidelines for evaluating property investments to avoid future complications.

“KKDW, Mara, and Mara Inc must ensure that all development projects, including property development and renewable energy initiatives, as well as marketing plans, are completed on time, within budget, and to the required standards to generate substantial net profits.

“Mara Corp must take a firm stance in managing its subsidiaries to ensure they generate profits, repay debts and pay dividends in line with its establishment goals,” he said.

She said Mara Inc should also establish a comprehensive Standard Operating Procedure (SOP) for property rentals to prevent rental arrears from accumulating into bad debts. — Bernama

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