Audit: Ministry of Finance channeled RM5.93 billion in management and development grants during 2012-2014

Audit: Ministry of Finance channeled RM5.93 billion in management and development grants during 2012-2014

KUALA LUMPUR, Nov 23 — The Ministry of Finance (MoF) had channelled a total of RM3.79 billion in management grants and RM2.14 billion for development grants to 18 and eight companies, respectively, under the Minister of Finance Incorporated (MoF Inc) for the 2012 to 2014 period.

” Sepang International Circuit Sdn Bhd received the highest management grant amounting to RM841.62 million, while 1Malaysia Development Bhd (1MDB) received a development grant totalling RM1.09 billion,” according to the Auditor-General’s Report 2014.

The report stated that the total amount of grants channelled did not take into account the allocation in the form of loans, equity, capital and government loan repayment.

The grants channelled to MoF Inc companies were aimed at funding programmes/special projects for, among others, implementing development role, compensation for tariff hike as well as funding gap, operating expenditure and other financial assistances during specified period.

In 2013, a total of 60 MoF Inc companies recorded pre-tax profit of RM101.02 billion, whereby 44 out of these companies achieved pre-tax profit of RM102.43 billion while 16 companies incurred losses of RM1.41 billion.

Petroliam Nasional Bhd (Petronas) is an MoF Inc company that recorded the highest pre-tax profit that year at RM94.26 billion, followed by Khazanah Nasional Bhd and 1MDB, recording RM4.65 billion and RM877.67 million, respectively.

However, Syarikat Prasarana Negara Bhd registered the highest loss before tax of RM670.85 million in 2013.

For the 2013 financial year, Petronas recorded the highest asset holdings of RM528.66 billion, followed by Khazanah (RM138.52 billion), 1MDB (RM44.66 billion), Bank Pembangunan Malaysia Bhd (RM29.25 billion) and Pembinaan PFI Sdn Bhd (RM26.66 billion).

— BERNAMA

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