KUALA LUMPUR, March 18 — The Public Accounts Committee (PAC) has found that UiTM Holdings Group and and its subsidiaries have yet to achieve the original objectives for Universiti Teknologi MARA (UiTM), which was to create investment opportunities and improve the strategic position of the company's core business.

UiTM Holdings Group is a wholly-owned investment holding company of UiTM and presently manages nine active subsidiaries with operations spanning five business divisions namely, energy, education, healthcare, technology and creative.

This report today is presented after the PAC's proceedings on December 6, 2023. In the proceedings, the Higher Education Ministry's (KPT) Deputy Secretary General (Policy), Datuk Megat Sany Megat Ahmad Supian, UiTM Vice Chancellor Prof Datuk Shahrin Sahib @ Sahibuddin and acting Chief Executive Officer of UiTM Holdings Group, Farisan Mokhtar were called in as witnesses.

In the statement released today, PAC chairman Datuk Mas Ermieyati Samsudin said that UiTM's failure to obtain the approval of the minister of finance is inconsistent with the provisions under the MARA University of Technology Act 1976 [Act 173], which resulted in the takeover of UiTM Private Education Sdn. Bhd. (UPESB) and UiTM Technoventure Sdn. Bhd. (UTVSB), which is against the act.

"Capital injection amounting to RM259.98 million by UiTM from 2007 to 2018 without the approval of the Minister of Finance (MOF) to own shares in UiTM Holdings is not in accordance with the requirements of Act 173.

"The solar project by UiTM Holdings benefits the operation of UiTM. However, the actual exchange of land conditions at Solar Park I Gambang, Pahang has not yet been completed," Mas Ermieyati said.

She added that the company's failure to finalise a new lease agreement between UiTM and UiTM Private Healthcare Sdn. Bhd. (UPHSB) had resulted in rent arrears for 15 months, in addition to causing the UiTM Specialist Health Centre hospital building to be poorly maintained.

The PAC had also recommended several measures to UiTM and KPT, to mitigate the red flags highlighted.

In the statement, Mas Ermieyati advised UiTM to be more effective in regulating UiTM Holdings and its subsidiaries so that they generate profits and can pay dividends in line with the goals of the establishment.

She said that UiTM needs to ensure compliance with the approval authority in making investments, loans and the establishment of subsidiary companies following the provisions of Act 173.

"KPT and UiTM must ensure that corrective action is taken in the issue of capital injection amounting to RM259.98 million to comply with Act 173.

"UiTM Holdings must immediately resolve the issue of the exchange of actual land conditions at Solar Park I Gambang, Pahang.

"UiTM Holdings needs to present a comprehensive plan on investment and business direction, including on the dealing resulting in the 15-month arrears on the building rental and the maintenance of the UiTM Specialist Health Centre hospital building," she added.

Mas Ermieyati said that PAC will also recall representatives from the MOF, KPT and UiTM for follow-up action proceedings on the said issue, within two months, to find out the response from the said parties to the recommendations given by the PAC.