Only 66 subsidiaries paid dividends to govt

PETALING JAYA: Only 66 of the 212 subsidiary companies under federal agencies paid dividends to the government in 2022, read the Auditor-General’s Report on Federal Agencies 2022.The dividends paid amounted to RM1.91bil in 2022, against total investments of RM56.128bil committed by 53 federal agencies with 234 subsidiaries.

Of the 234 subsidiaries, only 212 were said to be still active. “Besides that, 121 subsidiaries reported profits while 91 reported losses,” it said.

A total of 130 financial statements of federal agencies were audited, with aspects such as current account balances, assets and liabilities, grants received from federal agencies, liabilities and investments were looked into.

“Ten federal agencies reported the highest loan balances amounting to RM122.388bil.

“Four of the 10 had a balance of RM5.338bil in loan repayments to the Federal Government. However, three out of the four agencies had restructured their loan repayments,” it said.

Meanwhile, it said a total of 80 agencies reported a current account surplus totalling RM54.677bil, while 50 federal agencies reported a deficit amounting to RM4.57bil.

A total of 126 agencies reported positive nett worth, with asset value exceeding liabilities, while four had liabilities that outweighed their asset value, said the report tabled in the Dewan Rakyat yesterday.

In a statement, Auditor-General Datuk Wan Suraya Wan Mohd Radzi said the Audit Department has put forward 16 recommendations for corrective action and improvements.

Among the recommendations are compelling heads of federal agencies to submit financial statements for auditing by the deadline, as well as ensure grants are used for their intended purpose within the specified timeframe.

“Federal agencies should settle their loans according to the repayment schedule so as not to burden the Federal Government, which would incur financial costs beyond the due period.

“It is also recommended that the heads of federal agencies review the establishment of subsidiary companies that are dormant, loss making, or fail to generate satisfactory returns,” she said.

Following the publication of the report, Wan Suraya said all types of Auditor-General’s certificates on the financial statements of federal agencies will be displayed through the Auditor-General’s Dashboard (AGD) online platform starting this year.

She said this is to ensure audited federal agencies can take appropriate action to improve their financial statement preparations in future.