Mara Inc overpaid for London & Melbourne properties - PAC, Purchases also not approved by Finance Ministry.
KUALA LUMPUR: Overseas properties purchased by Mara Inc in 2013 and 2014 were overvalued, says the Public Accounts Committee (PAC).
PAC chairman Datuk Mas Ermieyati Samsudin said the purchases involved the Dudley International House, 51 Queen Street and 333 Exhibition Street in Melbourne, Australia, as well as Beaumont House in London.
“The purchases were not approved by the Finance Ministry.
“However, the Rural and Regional Development Ministry (KKDW) appealed the matter later, with it being brought before the Economic Council, which approved the purchases in 2013,” she said in a statement yesterday.
Mas Ermieyati said the matter is currently being investigated by the Malaysian Anti-Corruption Commission and also undergoing a court process.
“PAC recommends that KKDW, Majlis Amanah Rakyat (Mara), Mara Corporation Sdn Bhd (Mara Corp) and Mara Inc ensure that proposed investments both domestic and international – including high-value procurements like properties – comply with the latest government policies.
“Domestic investments should also be prioritised,” she said.
She said the recommendations were proposed following proceedings held on July 30, July 31 and Sept 19 this year.
According to the PAC report, Mara sold four properties between 2016 and 2018.
Three properties, namely 333 Exhibition Street in Australia, Ashley Hotel and Atelier Serviced Apartments in Britain were all sold for a profit.
However, the 51 Queen Street property, which has been flagged by PAC, was bought in May 2014 for RM70.43mil but was sold at a loss of RM5.30mil.
Dudley International House, meanwhile, generated a return of 38.7% between 2013 and 2023.
It was reported previously that the price of Dudley International House was deliberately inflated by A$4.75mil.
Then MARA Inc chairman Datuk Mohammad Lan Allani was charged with 22 counts of corruption amounting to RM20.45mil over the property deals in Melbourne. He pleaded not guilty to the charges.
Among the witnesses who presented their statements were deputy auditor-general (corporations) Roslan Abu Bakar; KKDW secretary-general Datuk Muhd Khair Razman Mohamed Annuar; Mara director-general Datuk Seri Azhar Abdul Manaf; Mara Corp Group Corporate Planning director Datuk Amir Azhar Ibrahim; and Mara Inc chief executive officer Mohd Fadzil Mohd Idris.
Separately, Mas Ermieyati said Mara Inc’s appeal to convert Premiera Hotel’s existing debt into equity for a second time should not be repeated. The first request was made in 2015.
“KKDW, Mara, Mara Corp, and Mara Inc should make sure that Premiera Hotel has a clear plan to ensure the debt-to-equity conversion generates returns for the company’s sustainability,” she said.
In the report, the PAC also proposed for KKDW, Mara and Mara Inc to see to it that all development projects – including property development, renewable energy projects and marketing plans – are completed on time and within budget, to generate high profits.The report said Mara Corp must also strictly monitor its subsidiaries to guarantee profits, repay debts and pay dividends.
Besides that, a comprehensive standard operating procedure must be established for property rental to prevent arrears.
“Mara Inc must also draft a complete and clear policy on property valuation,” said Mas Ermieyati.
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