KUALA LUMPUR: An individual with a Datukship involved in Mara Incorporated Sdn Bhd's (Mara Inc) RM286.3 million losses was brought to court and charged in 2021.

Mara chairman Datuk Dr Asyraf Wajdi Dusuki said the case involved corruption and misuse of power related to property purchases in Australia at prices higher than market value.

He said the accumulated losses stemmed from the purchase of seven overseas assets by Mara Inc, particularly in Australia and the United Kingdom (UK), between 2012 and 2014.

"The purchases at inflated prices above market value resulted in Mara Inc's accounts recording accumulated losses upon reassessment of assets and changes to accounting reporting methods," he said when contacted today.

Asyraf added that some of the properties had already been sold through a rationalisation recovery plan for Mara Inc, approved by its council in September 2015 to settle all foreign bank debts.

He said all remaining properties in Australia and the UK are free from any debts or liabilities.

"The Mara council and Mara management today are highly committed to ensuring that all aspects of corporate governance and financial management are at the highest level.

"This is to ensure that there will be no more wastage, deviations, abuses or misappropriation involving entrusted public funds," he said.

On February 2021, the former Mara Inc chairman was slapped with 22 corruption charges totaling RM20.45 million involving the purchase of properties in Australia in 2012.

He pleaded not guilty to all charges when the charges were read to him separately before Judges Azura Alwi and Rozina Ayob.

Meanwhile, the latest Auditor-General's report released found issues in Mara Inc financial accounts.

The audit disclosed that Mara Inc group incurred an accumulated loss of RM286.3 million.

The group reported an equity deficit of RM115.73 million, alongside current liabilities amounting to RM234.96 million.

Mara Inc's investments in five subsidiary companies suffered a substantial impairment of RM87.18 million, representing a 54.8 per cent decline in accumulated value.

Meanwhile, on June 6, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the RM286.3 million loss incurred by Mara Inc was due to bad investments.

Zahid, who is rural and regional development minister, said several assets bought by Mara Inc abroad were acquired at prices exceeding market value.

He pledged to find solutions to prevent similar occurrences.

He said the ministry will focus on managing transactions involving four assets bought above market prices in Australia and England.

Although rectifying these issues may take time, the ministry will ensure there is no breach of trust or mismanagement involving Mara's subsidiaries.

https://www.nst.com.my/news/nation/2024/07/1073423/datuk-involved-mara-inc-losses-brought-court-and-charged-2021