KUALA LUMPUR: Mara Incorporated Sdn Bhd (Mara Inc) made overvalued property purchases in London and Australia in 2014 and 2013, respectively.
Public Accounts Committee (PAC) chairman Datuk Mas Ermieyati Samsudin said the purchases were not approved by the Minister of Finance Incorporated (MoF Inc), but were appealed by the Rural and Regional Development Ministry.
"Mara Inc made overvalued property purchases in London, United Kingdom, specifically Beaumont House in 2014. They also made a purchase in Melbourne, Australia, including Dudley International House, 51 Queen Street and 333 Exhibition Street in 2013.
"These purchases were not approved by the MoF Inc, but the ministry appealed and the matter was brought before the Economic Council, which subsequently approved it in 2013.
"The case of the overvalued property purchase in Melbourne, Australia, was investigated by the Malaysian Anti-Corruption Commission (MACC) and is currently still undergoing court proceedings," she said in a statement today.
Datuk Mas Ermieyati Samsudin, who is also the Masjid Tanah member of parliament, said the PAC's findings regarding the management of Mara Inc. were the result of three proceedings held in July and September this year.
The witnesses, she said, included Deputy Auditor-General (Companies) Roslan Abdul Bakar, Ministry Secretary-general Datuk Muhd Khair Razman Mohamed Annuar, Mara Director-General Datuk Seri Azhar Abdul Manaf, Mara Corporation Bhd Corporate Planning Director Datuk Amir Azhar Ibrahim and Mara Inc Chief Executive Officer Mohd Fadzil Mohd Idris.
She added that to ensure such issues do not recur, the Rural and Regional Development Ministry, Mara, and its bodies, Mara Corp and Mara Inc, must ensure that investment proposals, both domestic and overseas, including the acquisition of high-value assets such as properties, comply with the latest government policies and prioritise domestic investments.
"Such proposals must first receive approval from the Ministry of Finance, and the ministry's decision must be adhered to to prevent a recurrence of property purchase scandals.
"In addition, the PAC also views Mara Inc's decision to request the conversion of the existing debt of Premiera Hotel into equity for the second time, after the first in 2015, as a step that should not be repeated."
She added that the PAC recommends the Rural and Regional Development Ministry, Mara and Mara Inc ensure all development projects, including property, renewable energy and marketing plans are completed on time, within budget and to the required quality to generate high profits.
"Mara Corp must effectively oversee its subsidiaries to ensure they generate profits, repay debts and pay dividends as intended.
"Meanwhile, Mara Inc must create a clear standard operating procedure for property leasing to prevent rental arrears and bad debts. Mara Inc should also develop a clear policy for property valuation."