KUALA LUMPUR: An individual with a Datukship linked to some of Mara Incorporated Sdn Bhd's (Mara Inc) losses of RM286.3 million was charged in court in 2021.
Majlis Amanah Rakyat (Mara) chairman Datuk Dr Asyraf Wajdi Dusuki said the case involved allegations of corruption and abuse of power related to the purchase of properties in Australia at inflated prices.
He said the losses were incurred from the purchase of seven assets in Australia and the United Kingdom between 2012 and 2014.
"The purchases were made at prices significantly higher than market value, resulting in losses in Mara Inc's accounts following a reassessment of assets and changes in accounting reporting methods," he said when contacted today.
He said some of the properties had been sold under a rationalisation plan for Mara Inc, approved by its council in 2015, to settle foreign debts.
He said the remaining properties in Australia and the UK were now free of debt or liability.
"The Mara council and management are committed to ensuring the highest standards of corporate governance and financial management. This commitment is crucial to prevent future wastage, deviations, abuses or misappropriation of public funds."
The latest Auditor General's Report highlighted issues in Mara Inc's financial accounts, revealing that the group incurred a loss of RM286.3 million.
The report noted an equity deficit of RM115.73 million and liabilities totalling RM234.96 million.
It said Mara Inc's investments in five subsidiaries suffered a substantial impairment of RM87.18 million, a 54.8 per cent decline in accumulated value.
On June 6, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi attributed the RM286.3 million in losses to bad investments.
Zahid, who is rural and regional development minister, said several of Mara Inc's overseas assets were bought at above market value.
He pledged to find solutions to prevent similar issues, focusing on managing transactions involving four assets bought above market prices in Australia and the UK.
"Although rectifying these issues may take time, the ministry will ensure there is no breach of trust or mismanagement involving Mara's subsidiaries."