Thursday, October 18, 2012

9 govt-linked companies registered losses for three straight years

Nine government-linked-company (GLCs) had registered losses for three consecutive years, according to the Auditor-General’s Report 2011.
The nine singled out by the report were Halal Industry Development Corporation Sdn Bhd, Indah Water Konsortium, Kereta Api Tanah Melayu Bhd, Malaysia Venture Capital Management Sdn Bhd, Jaring Communications Sdn Bhd, Syarikat Prasarana Negara Bhd, Inno Bio Ventures Sdn Bhd, Jambatan Kedua Sdn Bhd and Assets Global Network Sdn Bhd.
The total loss registered was a whopping RM2.446 billion.
Among the nine, Indah Water Konsortium, Kereta Api Tanah Melayu and Syarikat Prasarana Negara performed the worst, with losses amounting to RM333.29 million, RM549.18 million and RM1.27 billion respectively.
Halal Industry Development Corp (HDC) had blamed rising operational and management costs, including for training and courses, licensing as well as its participation in the World Halal Forum and World Halal Research.
“Although there are several operations like the halal licensing and halal training charged as revenue to the company, these charges were minimal and below cost,” the report noted.
HDC has also been listed among the nine companies showing decline in holding assets for three consecutive years from RM75.30 million in 2008 to RM57.62 million in 2009 and RM40.50 million in 2010.
According to the report, the decline was due to drop in fixed deposit saving under its Mudharabah investment account.

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