KUALA TERENGGANU, Nov 22 — Despite meeting its objectives as a holding and management services company for its subsidiaries and affiliates, the 2022 Auditor-General’s Report released today revealed the key performance indicators (KPIs) provided by Ketengah Holding Sdn Bhd were not comprehensive and the revenue performance of its main activities, except for agriculture, was unsatisfactory.
However, overall dividend receipts were good and exceeded targets.
In addition, the audit found that the management of subsidiary company activities in the livestock and quarrying sectors was inefficient, with weaknesses resulting in quail production ranging from only 22.4 per cent to 52.3 per cent as compared to the set target.
“An efficient and comprehensive marketing plan for quail products was not provided, and facilities and equipment in the quail farms were damaged and unusable.
“Additionally, the environment of the quail farming and hatching centre was not well managed.” read the report.
In the quarrying sector, Ketengah Holding’s subsidiary management was also found to be inefficient, with quarry product output ranging between 49.9 per cent and 99.7 per cent compared to the targets.
The report also highlighted issues of irregular maintenance of quarry machinery and equipment, and that the Pondok Limau Quarry in Dungun has been non-operational since 2016.
The report also revealed a declining trend in the subsidiary companies’ revenue in livestock, quarrying, and education from 2019 to 2021, accumulating a total debt of RM8.87 million that remained uncollected for over 120 days.
Additionally, the injection of capital funds amounting to RM2.35 million by Ketengah Properties was not according to the approval that was given.
As such, it was recommended that the management of Ketengah Holding and its board of directors address these issues, including developing key performance indicators (KPIs) to cover all subsidiary business areas.
This is to enable the entire business operation to be fully monitored and evaluated by the management and board of directors, in addition to monitoring the income target of subsidiary companies’ main activities accordingly.
It was also recommended that improvements be made in the management of livestock activities in terms of production, by preparing a comprehensive marketing plan as well as repairing damage to farms and equipment.
The management was also urged to improve its management of activities in the field of quarrying so that production can be optimised and achieved, in addition to ensuring that machines and machinery are maintained regularly to reduce repair costs. — Bernama
