The investment discrepancy was among the issues highlighted by Auditor-General Wan Suraya Wan Radzi in the report on the management of government-linked companies.
“UiTM’s investment activities are irregular, especially from the capital injection aspect, because no approval from the finance minister was obtained,” she said, adding that it was out of line with the UiTM Act 1976.
It was previously reported that the Malaysian Anti-Corruption Commission (MACC) was investigating UiTM Holdings for alleged inefficiency and leakage leading to RM157 million in losses.
A company spokesperson said investigations began nearly two years ago after revelations of severe losses for four consecutive years, Utusan Malaysia reported.
Wan Suraya also found that UiTM’s investment activities in the energy sector were inefficient, noting weaknesses in the implementation of large-scale solar power projects and rooftop solar projects.
“The conversion of UiTM Solar Park I land use conditions to the industrial category is still unresolved, although the project has been fully operational since 2019, and fines and land taxes amounting to RM14.69 million have been imposed by the district and land office of Kuantan,” she said.
She likewise noted incomplete cable installation leading to frequent incidents of cable breakage due to pests at the UiTM Solar Park II project, resulting in a loss of RM415,019 and cable replacement costs of RM98,055 for the period of 2022 to March 2023.
“41% of complaints about defects in the construction of rooftop solar power projects are still pending and require further discussion,” she added.
The report also found UiTM’s healthcare sector investments to be ineffective, with challenges identified in leasing agreements, infrastructure maintenance, and unmet targets for the UiTM Private Specialist Centre.
Wan Suraya also noted overdue licence renewals, unmet targets for specialist doctor visits, and issues with major medical equipment.
‘EPF yet to receive returns on RM1.77 billion investment in Kwasa Land’
The report also revealed that the EPF had yet to receive any principal repayment or dividends since injecting a paid-up capital of RM1.770 billion in Kwasa Land Sdn Bhd (KLSB) in 2009.
Wan Suraya said this was despite the EPF gaining a return of RM683.24 million through financing interest payments from KLSB, and an additional RM472.45 million in capitalised interest.
She added that Kwasa Damansara’s development was unsatisfactory as KLSB and EPF failed to meet the original 15-year development target spanning from July 2012 to 2027.
“The completed development for saleable land stands at a mere 0.4%, while the delivery of non-saleable land plots is 23.7% after 11 years since receiving the approval of the Economic Council,” she said.