THE RM286.3 million loss incurred by Mara Incorporated Sdn Bhd (Mara Inc) comes from bad investments, according to Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
The rural and regional development minister said several assets bought by Mara Inc abroad were acquired at prices exceeding market value.
"The losses at Mara Inc have been accumulating since 2012, a period during which I was not responsible for Mara.
"We don't want to assign blame, but the losses were due to misguided and excessive investments.
"I will not tolerate these matters, and we will work to address these losses.
"We will focus on managing transactions involving four assets bought above market prices in Australia and England.
"Although rectifying these issues may take time, we will ensure there is no breach of trust or mismanagement involving Mara's subsidiaries,” he was quoted as saying by The New Straits Times today.
He pledged to find solutions to prevent similar occurrences.
On Wednesday, the Auditor General's Report 2/2024 revealed that Mara Inc had incurred losses of R286.3 million due to inefficient operations.
The group reported an equity deficit of RM115.73 million, alongside current liabilities amounting to RM234.96 million.
In addition, Mara Inc's investments in five subsidiary companies suffered a substantial impairment of RM87.18 million, representing a 54.8% decline in accumulated value. – The Vibes, July 6, 2024.
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