PAC: UiTM Holding fails main objective of creating wealth

 

The Public Accounts Committee (PAC) has found that Universiti Teknologi MARA (UiTM) Holdings and its subsidiaries have yet to achieve the objective and mandate of creating wealth as well as investment opportunities for UiTM, and enhancing the companies’ core business strategic position.

PAC chairperson Mas Ermieyati Samsudin said the committee also found that UiTM Holdings also failed to obtain the Finance Ministry’s approval in taking over UiTM Private Education Sdn Bhd and UiTM Technoventure Sdn Bhd, which contravened the provision in UiTM Act 1976 (Act 173).

She said those were among the five conclusions from the PAC report following its proceedings into UiTM Holdings on Dec 6.

“The meeting to prepare this report was held on Feb 27 and was also attended by seven ex-officio PAC members from the Attorney-General's Chambers, Public Service Department, Finance Ministry, National Audit Department, MACC, Economy Ministry and Accountant-General’s Department, who agreed with the report and its conclusions and recommendations, and also finalised the report,” she said in a statement today.

Mas Ermieyati said the report also concluded that the capital injection amounting to RM259.98 million by UiTM between 2007 and 2018 for the purpose of share ownership in UiTM Holdings did not obtain the finance minister's approval and was done not in accordance with Act 173.

Apart from that, Mas Ermieyati said UiTM Holdings has yet to complete the change of the express condition of the land title in the Solar Park I project in Gambang, Pahang, and has also failed to finalise a new lease agreement between UiTM and UiTM Private Healthcare Sdn Bhd, resulting in 15 months worth of rental arrears and causing poor maintenance of the UiTM Specialist Hospital.

As such, she said PAC recommended UiTM to be more effective in regulating UiTM Holdings and its subsidiaries so that it can generate profits and be able to pay dividends in line with the goals of its establishment.

PAC chairperson Mas Ermieyati Samsudin

In addition, she said UiTM needs to ensure compliance with the approval authority in making investments, loans, and establishing subsidiary companies in line with the provisions of Act 173 and ensure that corrective actions are taken, together with the Higher Education Ministry, regarding the capital injection of RM259.98 million in UiTM Holdings.

She said UiTM Holdings, on the other hand, is advised to immediately resolve the issue of the change of the express condition of the land title in Solar Park I, Gambang, and present a comprehensive plan for investment and business direction, including dealing with the issue of rental arrears and the maintenance of the UiTM Specialist Hospital building.

“PAC will call the Finance and Higher Education Ministries and UiTM again for follow-up proceedings in this issue within these two months to get their feedback on the recommendations given,” she said.

UiTM Holdings fell under the microscope after it was alleged to have suffered losses of RM157 million based on the calculation of accumulated pre-tax losses for four years, namely for 2017, 2018, 2019 and 2021. 

UiTM Holdings is a wholly-owned investment holdings company of UiTM that manages eight subsidiaries with operations spanning across five business divisions namely energy, healthcare, technology and creative.

- Bernama