UiTM Holdings losses not unknown to university management, says former VC

 

Professor Datuk Dr Roziah Mohd Janor

KUALA LUMPUR: Financial problems affecting UiTM Holdings Sdn Bhd, which resulted in millions of ringgit in losses, were not unknown to the university's management but had been discussed and monitored at the highest levels, a former university vice-chancellor said.

Professor Datuk Dr Roziah Mohd Janor said UiTM Holdings' management was required to regularly present financial reports to the company's board of directors before they were brought to the university management and Board of Directors.

"The management was aware of the matter, and the crisis faced by UiTM Holdings had been discussed at the university management level.

"They had also been audited by a special audit team as well as the National Audit Department. However, during my tenure as vice-chancellor, I requested that every investment and project under UiTM Holdings be presented," she said.

Roziah said the public needed to understand that UiTM Holdings was a holding company owned by the university and that its initial capital did not come from direct government contributions or allocations.

Instead, she said, the capital came from internal accumulated funds generated and collected by the university.

She said regulatory mechanisms had also been established at the university's highest level to monitor investment governance and risks.

"The governance of UiTM's Board of Directors, both during my tenure and now, is supported by UiTM Board of Directors committees, which have a specific role in monitoring the company's operations and investment risks.

"In my view, UiTM is now improving the situation, and follow-up action must be actively undertaken by the current management and board of directors to address the issue," she said.

Roziah said the issue of UiTM Holdings' losses should be viewed alongside efforts to rehabilitate the company and improve its governance to safeguard the university's interests.

She said recommendations for improvement made through the audit process and the Public Accounts Committee (PAC) should be given attention and implemented immediately.

In March 2024, PAC found that UiTM Holdings and its subsidiaries had yet to achieve their original objectives and mandate of creating wealth for UiTM, creating investment opportunities and strengthening the strategic position of the company's core businesses.

The PAC also found that capital injections totalling RM259.98 million by UiTM between 2007 and 2018 for its shareholding in UiTM Holdings were not in accordance with the Universiti Teknologi MARA Act 1976 as they had not obtained the approval of the Finance Minister.

The committee, among other recommendations, called on UiTM to tighten oversight of UiTM Holdings and ensure compliance in matters involving investments, loans and the establishment of subsidiaries.

The issue came under renewed scrutiny after Prime Minister Datuk Seri Anwar Ibrahim last Saturday called for UiTM Holdings' management and governance to be reviewed.

He had said that weaknesses needed to be rectified, while firm action should be taken if any wrongdoing was found.

The Higher Education Ministry also said the process of reviewing and restructuring the holding companies of public universities, including UiTM Holdings, had begun last year to ensure the entities functioned more effectively and contributed to their respective universities.

UiTM Holdings was previously reported to have recorded cumulative pre-tax losses of about RM157 million for the 2017, 2018, 2019 and 2021 financial years.

The Malaysian Anti-Corruption Commission also confirmed that an investigation launched in 2023 was still ongoing, including into issues related to the 50-megawatt solar project in Gambang, Pahang, and governance weaknesses that had been raised. - NST