PETALING JAYA: Government-linked company (GLC) Mara Incorporated (Mara Inc) has suffered significant financial losses amounting to RM286.3 million as a result of “inefficient” business activities, according to the 2024 Auditor-General’s report.
Mara Inc handles property development and management along with hospitality as well as renewable energy, executed at the company’s level and five fully-owned subsidiaries with investments worth RM159.14 million as of 2023.
In the report, it was found that the GLC’s loan arrears to MARA impacted its current net liability standing, resulting in Mara Inc being unable to pay its shareholders dividends since 2014.
The report was based on the company’s property management and assessing its financial position.
Mara Inc owns three local properties, four in the UK and two in Australia, reporting an equity deficit of RM115.73 million with liabilities amounting to RM234.96 million.
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“MARA Inc needs to review the objectives and implementation of its core real estate management activities to benefit and yield returns for MARA Corp,“ the report was quoted as saying.
It was reported that Mara Inc held direct equity stakes up to RM159.14 million in 2023 however the company’s investments in the five subsidiaries went through a RM87.18 million loss, showing a 54.8% dip in value.
The report also suggested that the Rural and Regional Development Ministry improve on monitoring the performances of subsidiaries, including MARA Corp and MARA Inc
The GLC also improve on managing and monitoring and property management agreements between tenants and operators to secure the safeguarding the interests of the subsidiary company and Mara Inc, as proposed by the A-G report.
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