KUALA LUMPUR, Nov 26 –– The Public Accounts Committee (PAC) has found that MARA Inc made overvalued property purchases in London, United Kingdom (UK) and Melbourne, Australia, in 2013 and 2014.

PAC chairman Datuk Mas Ermieyati Samsudin said the transactions involving the purchase of Dudley International House at 51 Queen Street and 333 Exhibition Street in Melbourne, as well as Beaumont House in London, were not approved by the Ministry of Finance (MOF), according to a report in Malay news portal BH Online today.

However, she said the Ministry of Rural and Regional Development (KKDW) appealed the matter, and it was later brought before the Economic Council, which approved the purchases in 2013.

This was one of the findings presented by the PAC in the Dewan Rakyat today, with Mas Ermieyati informing that the overvalued property purchase in Melbourne had already been investigated by the Malaysian Anti-Corruption Commission (MACC) and is currently ongoing in court.

"To prevent this from happening again, PAC recommends that KKDW, Majlis Amanah Rakyat (MARA), MARA Corporation Sdn Bhd (MARA Corp), and MARA Inc ensure that investment proposals, whether domestic or international, including high-value asset acquisitions such as properties, comply with the latest government policies, prioritising domestic investments.

"Such proposals must first obtain MOF approval, and the MOF’s decisions must be adhered to, to avoid repeating property scandals,” she said in a statement.

The PAC’s findings and recommendations regarding the management of MARA Inc were the result of three proceedings held on July 30 and 31, and September 19.

Witnesses who testified and provided explanations included Deputy auditor-general (Corporations) Roslan Abu Bakar; KKDW secretary-general Datuk Muhd Khair Razman Mohamed Annuar; MARA director-general Datuk Seri Azhar Abdul Manaf; Group Corporate Planning director of MARA Corp Datuk Amir Azhar Ibrahim; and CEO of MARA Inc Mohd Fadzil Mohd Idris.

Additionally, Mas Ermieyati said the PAC believed that MARA Inc’s request to convert the existing debt of Premiera Hotel into equity for the second time, following the first in 2015, was an action that should not be repeated.

Thus, PAC recommends that KKDW, MARA, MARA Corp, and MARA Inc ensure Premiera Hotel has a clear plan to ensure the debt-to-equity conversion helps generate returns for the sustainability of the company.

The same report also includes PAC’s recommendation that KKDW, MARA, and MARA Inc ensure that all development projects, including property development, renewable energy projects, and marketing plans, are completed on time, within budget, and according to the quality and provisions set, in order to generate high net profits.

MARA Corp must also be firm in regulating all of its subsidiaries to ensure they can generate profits, repay debts, and pay dividends in line with the organisation’s founding goals.

"MARA Inc must establish a comprehensive Standard Operating Procedure (SOP) for property leasing to prevent rental arrears and avoid the accumulation of bad debts. They should also formulate a complete and clear policy on property valuations,” she said.