“The Public Accounts Committee (PAC) urges MARA and its entities to prioritise local investments, strengthen financial management, and align property acquisitions with government policies following findings of overvalued purchases in London and Melbourne.“
Kuala Lumpur, 27th Nov 2024, 01.54pm – The Public Accounts Committee (PAC) has urged the Rural and Regional Development Ministry (KKDW), Majlis Amanah Rakyat (MARA), MARA Corporation (MARA Corp), and MARA Inc to align their high-value investment proposals, particularly property acquisitions, with government policies and prioritise domestic investments.
“All proposals must focus on local investments and obtain prior approval from the Finance Ministry (MoF),” said PAC chairman Datuk Seri Mas Ermieyati Samsudin in a statement following the presentation of the MARA Inc management report to the Dewan Rakyat today.
This recommendation comes after PAC’s findings from three proceedings held on July 30 and Sept 10, which revealed that MARA Inc had overpaid for property purchases in London and Melbourne, including Dudley International House, 51 Queen Street, 333 Exhibition Street, and Beaumont House.
Mas Ermieyati highlighted that some transactions lacked MoF approval, though a subsequent appeal led to approval from the National Economic Council in 2013. She also noted that one Melbourne property case is under trial following an investigation by the Malaysian Anti-Corruption Commission (MACC).
The PAC recommended that MARA Inc avoid repeating errors like its second debt-to-equity conversion attempt for Premiera Hotel after the first in 2015. A clear plan is needed to ensure profitability and sustainability.
Furthermore, the PAC called on KKDW, MARA, MARA Corp, and MARA Inc to enhance financial management and establish clear guidelines for evaluating property investments to prevent similar issues in the future.
“MARA Corp must ensure subsidiaries generate profits, repay debts, and pay dividends. Premiera Hotel must have a robust financial strategy, and MARA Inc should create a comprehensive Standard Operating Procedure (SOP) to prevent rental arrears from becoming bad debts,” said Mas Ermieyati.
The PAC also stressed timely and budget-conscious completion of development and marketing projects, including renewable energy initiatives, to maximise returns and ensure alignment with MARA’s establishment goals.
