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PETALING JAYA: Government-linked company Mara Incorporated (Mara Inc) is on shaky financial footing, having incurred RM286.30 million in losses due to inefficient business activities, says the national audit department.

In the 2024 auditor-general’s (A-G) report released today, the department also found that Mara Inc’s loan arrears had impacted the company’s net current liabilities position, leaving it unable to pay its shareholders dividends since it was established in 2014.

The audit was conducted on Mara Inc’s property management activities and involved nine best corporate governance practices from 2020 to 2023, while its financial position was calculated based on audited financial statements from 2020 to 2022.

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

“Mara Inc was established to help empower the Bumiputera economy by leasing premises, providing job opportunities, and appointing vendors,” said the report.

“However, it has been unsatisfactory in terms of returns based on Mara’s capital injections as it has incurred losses and is in a net current liabilities position.

“Mara Inc needs to review its objectives and the implementation of core property management activities to ensure profitability and returns to Mara Corp.”

As of last year, Mara Inc held direct equity stakes in five subsidiaries totalling RM159.14 million. The report found that Mara Inc’s investments in those five subsidiaries suffered a RM87.18 million impairment, representing a 54.8% drop in its total value.

The report proposed that the rural development ministry and Mara increase the monitoring of its subsidiaries such as Mara Corp and Mara Inc.

It also suggested that Mara Inc pay closer attention to its management agreements with tenants and operators to safeguard the interests of its subsidiaries.