KUALA LUMPUR (July 5): Appropriate action, including legal measures, has been initiated to address the RM286.3 million accumulated losses reported by Mara Incorporated Sdn Bhd (Mara Inc), as highlighted in the Auditor-General's Report (LKAN) released Thursday.

Mara director-general Datuk Seri Azhar Abdul Manaf said the accumulated losses between 2012 and 2022 were partly attributed to asset acquisitions abroad, particularly in Australia and the United Kingdom from 2012 to 2014.

One measure implemented is a rationalisation plan approved by the Mara Council in Sept 2015 aimed at annually enhancing asset values and strengthening corporate governance to reduce accumulated losses.

"The plan involves debt repayment and the restructuring of Mara Inc's overseas operations, which has already begun yielding positive outcomes with the clearance of external debts," Azhar said in a statement Friday.

"However, the Covid-19 pandemic severely impacted Mara Inc's asset performance in 2020 and 2021, causing significant depreciation and becoming a major factor contributing to the company's accumulated losses," he added.

Azhar noted that Mara Inc's asset performance has improved significantly from 2022 to June 2024, marked by higher rental and occupancy rates exceeding 90% which has positively impacted asset values post-pandemic.

He said over the past three years, Mara Inc's real estate investments increased by almost 30% from RM170 million to RM215 million. The company has also achieved profits after tax in 2022, 2023, and up to May 2024.

These improvements have reduced accumulated losses by RM14.06 million, a 5% decrease from 2022, and allowed Mara Inc to pay dividends to Mara Corp.

"The Mara Council and management are fully committed to upholding the highest standards of corporate governance and financial management to safeguard public funds entrusted to us," Azhar said.

According to the Auditor-General's Series 2/2024 Report presented in the Dewan Rakyat Thursday, Mara Inc's total accumulated losses decreased by 3.8% from RM297.63 million in 2021 to RM286.3 million in 2022.

This reduction reflects the group's improved financial performance, achieving a pre-tax profit of RM11.67 million in 2022.

https://www.theedgemarkets.com/node/718107