Individuals involved in MARA Inc’s losses have been charged, said Asyraf Wajdi

KUALA LUMPUR: Individuals involved in the loss of MARA Incorporated Sdn Bhd (MARA Inc) worth RM286.3 million have been brought before and charged in court.

Berita Harian reported that the Chairman of MARA, Datuk Dr Asyraf Wajdi Dusuki, said the case is currently ongoing involving charges of corruption and abuse of power related to the purchase of real estate in Australia at a price higher than the market value.

He said the accumulated losses were related to the purchase of seven overseas assets in dubious transactions by MARA Inc, a subsidiary of MARA Corporation Sdn Bhd (MARA Corp), particularly in Australia and the United Kingdom (UK) between 2012 and 2014.

“Purchases involving higher and extreme prices than the market value caused MARA Inc’s account to record accumulated losses when revaluation was made on the assets and changes to the accounting reporting method,” he told BH, today.

He added that some of the properties have already been sold through the Rationalization Plan implemented by MARA Inc and approved by the MARA Council in September 2015 for the purpose of paying off all foreign bank debts.

He said, so far, all real estate assets that are still in Australia and the UK are free from any debt and any commitments or claims.

“The MARA council and MARA management today are very committed and committed to ensuring that all aspects of MARA’s corporate governance and financial management are at the highest level.

“It is to ensure that there is no more leakage, deviation, misappropriation and waste involving the people’s money entrusted to them,” he said.

Yesterday, the Director General of MARA, Datuk Seri Azhar Abdul Manaf was reported to have explained that the losses of MARA Inc worth RM 286.30 million accumulated from 2012 to 2022 as found in the Auditor General’s Report 2/2024, were caused by the purchase of overseas assets.

He further said that following the loss which involved a number of asset purchase matters especially in Australia and the UK between 2012 and 2014, all appropriate actions have been taken including from the legal aspect as well as follow-up actions by MARA and the company.

However, according to Azhar, the contagion of COVID-19 caused the value of the assets involved to fall sharply and became the biggest contributor to the company’s accumulated losses before asset performance improved from 2022 until last June.

“Rental rates and occupancy rates exceed 90 percent and generate good returns for MARA Inc, having a positive impact on the value of the assets involved after the COVIC-19 pandemic. The value of MARA Inc’s real estate investment also increased by almost 30 percent from RM170 million to RM215 million,” said Azhar .

Financial performance showed a positive trend by recording profit after tax for 2022, 2023 and as of last May, thus reducing accumulated losses by RM14.06 million or five percent of the total accumulated losses in 2022.

“It allows MARA Inc to make dividend payments to MARA Corp,” Azhar said as reported by the media.

Last Thursday, LKAN 2/2024 revealed that MARA Inc recorded a cumulative loss of RM286.3 million in 2022 due to inefficient implementation of activities, in addition to recording a shareholding deficit amounting to RM115.73 million and incurring current liabilities amounting to RM234.96 million.

Yesterday, the Deputy Prime Minister who is also the Minister of Rural and Regional Development, Datuk Seri Dr Ahmad Zahid Hamidi informed that the accumulated losses of MARA Inc were due to extreme investment mistakes, and even some of the company’s assets abroad were bought at prices above the market price.