KUALA LUMPUR: The 2022 Auditor-General's Report identified that three out of five audited federal government companies exhibit weak financial standings and have failed to meet their stated objectives.
Auditor General Datuk Wan Suraya Wan Mohd Radzi revealed the three as UiTM Holdings Sdn Bhd, Kwasa Land Sdn Bhd (KLSB) and CBS Land Sdn Bhd.The report today singled out UiTM Holdings for inadequate corporate governance, citing the acceptance of an unauthorised capital injection as a key concern.
"An injection of capital totalling RM259.98 million by UiTM without the approval of the Finance Minister (MOF) is inconsistent with the Universiti Teknologi MARA Act 1976 (Act 173)," the report read.
In addition, failure to complete the process of converting the land's present classification from educational to industrial for the UiTM Solar Park I initiative in Gambang, Pahang, has resulted in fines and land taxes totalling RM14.69 million.
She also said the original development target for Kwasa Damansara within the 15-year period from July 2012 to 2027 has yet to be achieved by KLSB and the Employees Provident Fund (EPF).
"Only 5.20 acres (0.4 per cent) of the total land plot area (1,324.49 acres) that can be sold has been developed since 2012.
"EPF's investment in KLSB, involving a paid-up capital of RM1.770 billion, has not yielded any dividend payments since its establishment in 2009,' she said.
Special audits were also conducted on the fund management for 11 financing programmes under TEKUN Nasional, involving allocations received from the Finance Ministry totalling RM395 million for the 2021 financing programmes.
"Overall, the fund management and financing activities of TEKUN Nasional were found to be unsatisfactory," she said.