KUALA LUMPUR: Several overseas properties purchased by MARA Inc in 2013 and 2014 were overvalued based on the findings presented by the Public Accounts Committee (PAC) to Parliament.
PAC chairman Datuk Mas Ermieyati Samsudin said the purchases involved the Dudley International House at 51 Queen Street and 333 Exhibition Street in Melbourne, as well as Beaumont House in London.
“The purchases were not approved by the Finance Ministry.
“However, the Rural and Regional Development Ministry (KKDW) appealed the matter with it later being brought before the National Economic Action Council, which approved the purchases in 2013,” she said in a statement on Tuesday (Nov 26).
Mas Ermieyati said the matter is currently under investigation by the Malaysian Anti-Corruption Commission and also undergoing the court process.
“Moving forward, PAC recommends for the KKDW, MARA, MARA Corporation Sdn Bhd (MARA Corp), and MARA Inc to ensure proposed investments, both domestic or international, including high-value procurements like properties to comply with the latest government policies.
“Domestic investments should also be prioritised,” she said.
Mas Ermieyati also said the recommendations were proposed following three proceedings held on July 30, July 31 and Sept 19 this year.
Among the witnesses who presented their statements were deputy auditor-general (corporations) Roslan Abu Bakar, KKDW secretary-general Datuk Muhd Khair Razman Mohamed Annuar, MARA director-general Datuk Seri Azhar Abdul Manaf, MARA Corp group corporate planning director Datuk Amir Azhar Ibrahim and MARA Inc chief executive officer Mohd Fadzil Mohd Idris.
Separately, she said MARA Inc’s appeal to convert Premiera Hotel’s existing debt into equity for a second time should not be repeated.
The first request was made in 2015.
“KKDW, MARA, MARA Corp and MARA Inc should ensure Premiera Hotel has a clear plan to ensure the debt-to-equity conversion generates returns for the company’s sustainability,” she said.
In the same report, the PAC also proposed for KKDW, MARA and MARA Inc to ensure all development projects, including property development, renewable energy projects and marketing plans are completed on time and within budget to generate high profits.
The report said MARA Corp must also strictly monitor its subsidiaries to ensure profits, repay debts and pay dividends.
A comprehensive standard operating procedure must also be established for property rental to prevent arrears.
“MARA Inc must draft a complete and clear policy on property valuation,” said Mas Ermieyati.
