KUALA LUMPUR (March 18): The Public Accounts Committee (PAC) found that Universiti Teknologi MARA (UiTM) Holdings and its subsidiaries had yet to achieve the objective and mandate of creating wealth as well as investment opportunities for the university, or enhance the companies’ core business strategic position.

PAC chairman Datuk Mas Ermieyati Samsudin said the committee also found that UiTM Holdings had failed to obtain the Ministry of Finance’s (MOF) approval in taking over UiTM Private Education Sdn Bhd and UiTM Technoventure Sdn Bhd, which contravened provisions of the UiTM Act 1976 (Act 173).

She said those were among the five conclusions from the PAC report following its proceedings into UiTM Holdings on Dec 6.

“The meeting to prepare this report was held on Feb 27, and was also attended by seven ex-officio PAC members from the Attorney General's Chambers, Public Service Department, MOF, National Audit Department, Malaysian Anti-Corruption Commission, Ministry of Economy, and Accountant General’s Department, who agreed with the report, conclusions and recommendations, and also finalised the report,” the PAC chairman said in a statement on Monday.

Mas Ermieyati said the report also concluded that the capital injection amounting to RM259.98 million by UiTM between 2007 and 2018 for the purpose of share ownership in UiTM Holdings did not obtain the then finance minister's approval, and was done not in accordance with Act 173.

Apart from that, she said UiTM Holdings had yet to complete the change of the express condition of the land title in the Solar Park I project in Gambang, Pahang, and also failed to finalise a new lease agreement between UiTM and UiTM Private Healthcare Sdn Bhd, resulting in 15-month rental arrears and causing poor maintenance of the UiTM Specialist Hospital.

As such, she said the PAC recommends UiTM to be more effective in regulating UiTM Holdings and its subsidiaries, so that they can generate profits and be able to pay dividends in line with the goals of their establishment.

In addition, she said UiTM needs to ensure compliance with the approval authority in making investments, loans, and establishing subsidiary companies in line with the provisions of Act 173, and ensure that corrective actions are taken, together with the Ministry of Higher Education (MOHE), regarding the capital injection of RM259.98 million into UiTM Holdings.

She said UiTM Holdings, on the other hand, is advised to immediately resolve the issue of the change of the express condition of the land title in Solar Park I, Gambang, and present a comprehensive plan for investment and business direction, including dealing with the issue of rental arrears and the maintenance of the UiTM Specialist Hospital building.

“The PAC will call the MOF, MOHE and UiTM again for follow-up proceedings in this issue within these two months to get their feedback on the recommendations given,” she said.

UiTM Holdings fell under the microscope after it was alleged to have suffered losses of RM157 million based on the calculation of accumulated pre-tax losses for four years, namely for 2017, 2018, 2019 and 2021.

UiTM Holdings is a wholly owned investment holdings company of UiTM that manages eight subsidiaries, with operations spanning across business divisions including energy, healthcare, technology and creative.