He said losses suffered by Mara Inc, highlighted in the 2024 auditor-general’s report yesterday, were due to the poor performace of its foreign assets and the Covid-19 pandemic.

The report said Mara Inc accumulated losses of RM286 million, leaving it unable to pay dividends since being established 10 years ago.

Azhar said some of the losses mentioned in the audit report were linked to property purchases abroad, particularly in Australia and the UK, between 2012 and 2014.

The Covid-19 pandemic in 2020 and 2021 affected the performance of Mara Inc’s properties, whose value plummeted, becoming the largest contributors to the company’s accumulated losses, he said.

He said the performance of these properties had improved since 2022, with increased rents and occupancy rates now exceeding 90%. He said these assets have generated good returns for Mara Inc and have had a positive impact after the Covid-19 pandemic.

He said Mara Inc had recorded after-tax profit since 2022, thereby reducing its accumulated losses by RM14.06 million or 5% from the total accumulated losses in 2022.

Azhar said this has enabled Mara Inc to make dividend payments to Mara Corp.

He said Mara Inc’s real estate investments increased by nearly 30% from RM170 million to RM215 million while its financial performance has also shown a positive trend.

Mara Inc’s portfolio includes three local properties and six overseas – four in the UK and two in Australia. The company has reported an equity deficit of RM115.73 million, with current liabilities standing at RM234.96 million.

Azhar said appropriate action had been taken, including through legal means to resolve this issue.

He said Mara approved a rationalisation plan for Mara Inc in September 2015 to ensure the company could improve the value of its assets and reduce losses.

Azhar said the plan included debt settlements and operational rationalisation involving Mara Inc’s assets abroad, which he said has now begun to yield results as they are now debt-free.