KUALA LUMPUR: A total of RM259.98 million was invested in Universiti Teknologi Mara (UiTM) Holdings through capital injections and loan-to-equity conversions without the approval of the Finance Ministry (MoF), which is in violation of the Universiti Teknologi Mara Act 1976.
The Auditor-General's Report 2022 released today revealed that the investments comprised ordinary shares amounting to RM124.38 million and Islamic Accumulated Redeemable Convertible Preference shares amounting to RM135.6 million.
Auditor-General Datuk Wan Suraya Wan Radzi said the output performance was not satisfactory from the aspect of key performance indexes (KPIs) which had not met the target and not monitored by its Board of Directors, as well as the investment in subsidiary companies had impaired up to 52 per cent.
"UiTM Holding's investment activities are irregular, especially from the capital injection aspect, because no approval from the finance minister was obtained.
"The financial position of the UiTM Holdings Group was less stable within the evaluated period," she said.
UiTM Holdings had not yet fully achieved the mandate and objectives of its establishment in fulfilling its role as an investment holding company in its subsidiary companies, which provides returns to UiTM.
Meanwhile, investment activities in the field of Energy were less efficient, with weaknesses found in the implementation of the large scale solar electric power generation and rooftop solar projects.
She said the conversion of the UiTM Solar Park I's land category status to industry status had not yet been completed even though the project had been fully operated since 2019, resulting in fine and quit rent totaling RM14.69 million imposed by the Kuantan District and Land Office.
She said serious soil erosion at UiTM Solar Park I and UiTM Solar Park II was found; and frequent cable loss incidents were found as the cable installation was not perfectly sealed.
This has caused losses amounting to RM415,019 and cable replacement of RM98,055 for the period of 2022 to March 2023, she said.
In addition, 41 per cent of construction defect complaints related to the solar rooftop projects have yet to be rectified and need further discussion.