Universiti Teknologi Mara (UiTM) incurred losses of RM58.57mil primarily due to delays in initiating compensation claims against scholarship holders who breached contracts, revealed the Auditor-General’s Report 2021.
According to the report, based on audits conducted from 1999 and 2022, 259 scholarship holders failed to complete their studies within the stipulated time frame.
This resulted in potential losses amounting to RM52.34mil.
The report said the university was facing a potential loss of RM51.08mil which was in the form of compensation that had yet to be claimed.
The university could no longer claim RM1.26mil from 20 defaulters due to the Limitation Act 1953.
Meanwhile, RM6.23mil from debtors who had breached contract had to be written off.
As at the end of Dec 31, 2021, the university had yet to get the green light from the Human Resources Career Development Committee to commence compensation claims amounting to RM42.63mil against 201 scholarship holders who had breached their contracts.
On another note, the report also revealed that the weaknesses in recording, monitoring and enforcement of rental collection caused the Railway Assets Corporation (RAC) to lose RM12.84mil in rental revenue.
The report said RAC had not collected rental income amounting to RM170,474 from 12 tenants of its properties, comprising 10 sole proprietorships, one partnership and an agency.
The report also revealed that 54 rental offer letters (STS) were returned by tenants, but rental agreements were not prepared.
RAC failed to collect RM12.67mil as at Dec 31, 2021, in property rental based on the 54 STS returned.
