RM1bil in profits, dividends not paid to gov't

At least nine companies owned by the federal government did not pay any dividends to the national coffer for three consecutive years from 2008, even though they recorded profits over this period.

The Auditor-General’s Report 2011 notices that these companies have reported a total accumulated profit after tax of RM943.46 million, but that no dividend has been paid or proposed to the government.

The regulations stipulate that government-owned companies must pay a minimum of 10 percent annual dividend from their profit after tax to the government as shareholder.

Should they record higher profit, the percentage of the dividend will be increased as long as it does not affect the companies’ financial status.

The auditor-general audited the financial statements of 47 companies of which the government owns over 50 percent equity, from 2008 to 2010.

He has found that 23 have reported profit before tax for three consecutive years amounting to RM255.834 billion, while nine suffered consecutive losses amounting to RM2.446 billion.

However, as at May 2012, only 14 of the 47 companies had paid a total of RM49.49 billion in dividends to the government for the 2010 financial year.

“Of that number, 10 companies obtained profit and paid dividends for three consecutive years amounting to RM109.36 billion,” reads the report.

“Only Pembinaan BLT Sdn Bhd stated the reasons and excuses for not paying dividend in 2010 to Ministry of Finance Inc, while Rangkaian Hotel Seri Malaysia Sdn Bhd only submitted reasons for not paying dividend up to 2008.”

[More to follow]