PETALING JAYA: The government’s scheme to help small business has racked up RM209.28 million in losses, with total bad debts written off amounting to RM410.61 million, the Auditor-General’s Report said today.
The audit carried out between May and October last year, and February this year, showed that the National Entrepreneurial Group Economic Fund (Tekun Nasional), which comes under the purview of the Agriculture and Agro-based Industry Ministry, had managed to increase its total financing from RM2.69 billion to RM4.29 billion for 473,982 entrepreneurs within 18 years.
“However, the financial performance of Tekun Nasional for the year 2013 to 2015 was less than satisfactory due to massive debt to the government and a huge amount of bad debts being written off.
“Accumulated losses at the end of year 2015 amounted to RM209.28 million.
“Management of activities was in accordance with the objective of incorporation but not properly planned,” the report stated, adding that corporate governance practices were also less than satisfactory.
Among the audit findings that needed to be given attention were the repayment rate compared with the target set, that is between 78.1% and 96.9%.
The report stated that as at June 30 last year, non-performing finance stood at 38% (RM769.34 million) of the total repayment arrears of RM2.02 billion.
It said total bad debts written off were RM410.61 million (9.6%) from total financing while collected repayments were only RM74.63 million.
“There was also the failure in the implementation of the Tekun Entrepreneurship Portal, Tekun Entrepreneur Community Card and Cyber Mall, which resulted in losses amounting to RM872,035.
“The members of the Audit Integrity and Risk Committee did not have accounting backgrounds,” the audit report also revealed.
Tekun was set up to provide financing facilities and help entrepreneurs develop and expand their businesses.