KHAZANAH Nasional Bhd has reiterated its dedication to transparency, accountability, and robust corporate governance for its special purpose vehicle (SPV) i2M Ventures Sdn Bhd.

This assurance comes in response to an Auditor General report revealing i2M’s unstable financial situation and its failure to meet objectives in promoting and managing businesses in Iskandar Puteri, Johor.

According to the report, i2M incurred losses amounting to RM135.46 mil in 2022. Despite these losses, the entity managed to meet its obligations, thanks to direct funding from Khazanah, consistent with its establishment as a non-profit organisation.

The Auditor General recommended a review to evaluate the continued relevance of i2M after fulfilling its commitments to Iskandar Global Business Services (GBS Iskandar) investors by 2025.

Moreover, the report called for enhanced corporate governance practices, particularly in establishing standard operating procedures (SOPs) for investor incentive payments.

Khazanah has acknowledged the four recommendations from the National Audit Department regarding i2M’s corporate governance. It clarified that i2M no longer issues new grants, with existing recipients now managed by Iskandar Investment Bhd (IIB) under a service level agreement signed in May 2020.

“Therefore, board meetings at i2M were conducted via circular resolution. All matters of proper governance and oversight are undertaken by IIB as per the terms of the agreement,” Khazanah told Business Times in an email.

Khazanah also noted that a revised SOP, adopted on June 28 of the previous year, addresses delays in disbursing incentives, which were caused by incomplete documentation from grant applicants.

Looking ahead, Khazanah stated that i2M’s strategic plan would align with IIB’s business plan to further develop the Iskandar Puteri ecosystem, as IIB assumes operational responsibilities for i2M.

https://focusmalaysia.my/khazanah-reaffirms-commitment-to-governance-amid-i2m-ventures-financial-woes/