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Khazanah under PAC spotlight for failed ventures

 | October 24, 2013

The Public Accounts Committee says that the Auditor-General's Office had tried to seek an explanation from Khazanah Nasional Berhad on several of its ventures but did not receive any response.

KUALA LUMPUR: Public Accounts Committee (PAC) has instructed the Auditor-General’s Office to get Khazanah Nasional Berhad to explain several of its ventures which went bust.

“We had a meeting earlier with the deputy auditor-general (Anwari Suri). The recent audit done on Khazanah was limited.

“But recently, the media reported that some of Khazanah’s ventures did not turn out well. So we will ask the agency to give an official answer,” said PAC chairman Nur Jazlan Mohamed.

The Auditor-General’s report highlighted that certain individuals in Khazanah had accumulated RM1.26 million in expenses using the agency’s charge card, but did not declare the expenses to their superiors.

However, the media reports highlighted something bigger, where the state investment agency had failed to make money on some of its ventures.

Among the projects was the Malaysian Agrifoods Corporation, which set up a food supply chain and cold room facilities, but failed to make a profit since its inception in 2006.

Another project called Silterra, failed to make a profit as well as a listing target on the New York-based Nasdaq, in the second quarter of 2002.

Nur Jazlan said the Auditor-General’s Office had asked Khazanah to give a formal reply within two weeks for evaluation.

He added that the auditor-general had already tried seeking an explanation earlier, but Khazanah did not reply.

“If need be, PAC will call Khazanah to explain,” said the Pulai MP.

However, Nur Jazlan was coy when asked on what action could be taken against Khazanah if they failed to answer the auditor-general.

“Let them reply first. If they don’t, it will be insubordination. They are a government agency. When the auditor-general asks for an explanation, you have to give reply” he said.


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