UiTM, an exclusively Malay-bumiputera public institute, injected RM259.98 million into its investment-holding company without the approval of the Finance Ministry, revealed the latest Auditor-General’s report, which flagged this as “improper”.

The investment comprised ordinary shares amounting to RM124.38 million and Islamic Accumulated Redeemable Convertible Preference shares amounting to RM135.6 million.

The “improper investment” was also in violation of the Universiti Teknologi Mara Act 1976.

Auditor-General Wan Suraya Wan Radzi said the investment’s return was unsatisfactory, judging from key performance indicators (KPIs) which did not meet targets and were not monitored by UiTM’s directors.

“UiTM Holdings’ investment activities are irregular, especially from the capital injection aspect, because no approval from the finance minister was obtained.

“The financial position of the UiTM Holdings Group was less stable within the evaluated period,” she said.

UiTM Holdings had not yet achieved the objective of its establishment in providing returns to UiTM, she added.

The report also stated that investment activities in the field of energy were less efficient, with weaknesses found in the implementation of large-scale solar electric power generation and rooftop solar projects.

According to Wan Suraya, the change in category of UiTM Solar Park I from land to industry had not yet been completed even though the project had been fully operational since 2019.

“This resulted in a fine and quit rent totaling RM14.69 million imposed by the Kuantan District and Land Office.

“There is serious soil erosion at UiTM Solar Park I and UiTM Solar Park II and frequent cable loss incidents were found as the cable installation was not perfectly sealed,” she added.

This has caused losses amounting to RM415,019 and cable replacement costs of RM98,055 for the period of 2022 to March 2023.

In addition, 41% of construction defect complaints related to the solar rooftop projects have not been addressed and need further discussion. – November 22, 2023.