TEKUN LOST RM209M IN 2015

Poor plan­ning, bad gov­er­nance and debts to blame

New Straits Times - - News - SOO WERN JUN KUALA LUMPUR news@nst.com.my

THE Na­tional En­tre­pre­neur­ial Group Eco­nomic Fund (Tekun) ac­cu­mu­lated losses amount­ing to RM209.28 mil­lion as of 2015, Par­lia­ment was told yes­ter­day.

The losses were brought about by mas­sive debts to the gov­ern­ment and a huge amount of bad debts writ­ten off by Tekun.

In the Au­di­tor Gen­eral’s Re­port 2016 Se­ries 1 pre­sented to Par­lia­ment, the man­age­ment of ac­tiv­i­ties in Tekun was in ac­cor­dance with the goal of its in­cor­po­ra­tion but was not prop­erly planned.

“The cor­po­rate gov­er­nance prac­tices are also less than sat­is­fac­tory,” the re­port said.

Au­dits car­ried out from May to Oc­to­ber last year and Fe­bru­ary this year found that com­pre­hen­sive stud­ies were not done to eval­u­ate the ef­fec­tive­ness of fund util­i­sa­tion by en­trepreneurs to start or ex­pand their busi­nesses.

The re­port said: “The per­for­mance of re­pay­ment com­pared with tar­get was only be­tween 78.1 per cent and 96.9 per cent.”

As at 30 June last year, the re­port stated that non-per­form­ing fi­nance stood at 38 per cent (RM769.34 mil­lion) from the to­tal re­pay­ment ar­rears of RM2.02 bil­lion.

“To­tal bad debts be­ing writ­ten off were RM410.61 mil­lion (9.6 per cent) from to­tal fi­nanc­ing and col­lected re­pay­ments were RM74.63 mil­lion (18.2 per cent).

“Tar­geted time­frame and out­come for six En­tre­pre­neur Devel­op­ment Special Pro­grammes were not set.”

The re­port said Tekun Credit Guar­an­tee Scheme failed to achieve its goal due to a lack of re­sponse from sup­pli­ers.

“Joint Pro­gramme Com­mit­tee for Men­tor Men­tee Pro­gramme was not formed and pro­gramme monthly re­ports were not sub­mit­ted by the three men­tor com­pa­nies.

“Fail­ure in the im­ple­men­ta­tion of Tekun En­trepreneur­ship Por­tal, Tekun En­tre­pre­neur Com­mu­nity Card and Cy­ber Mall re­sulted in losses of RM872,035 and mem­bers of the Au­dit, In­tegrity and Risk Com­mit­tee did not have an ac­count­ing back­ground.”

The re­port said cor­po­rate gov­er­nance prac­tices on fi­nan­cial man­age­ment were not man­aged prop­erly.

To im­prove the per­for­mance man­age­ment of the com­pany, the re­port rec­om­mended that Tekun con­duct a com­pre­hen­sive study to eval­u­ate the ef­fec­tive­ness of fund util­i­sa­tion by en­trepreneurs and rea­sons for the fail­ure of their busi­nesses.

Tekun is also re­quired to con­duct a fea­si­bil­ity study be­fore ex­e­cu­tion of pro­grammes and to mon­i­tor them to en­sure their ob­jec­tives are achieved as well as timely re­pay­ment.

The re­port said the au­dit also re­vealed that Tekun in­creased its to­tal fi­nanc­ing from RM2.69 bil­lion to RM4.29 bil­lion for 473,982 en­trepreneurs within 18 years.

FILE PIC

Tekun must con­duct a com­pre­hen­sive study to eval­u­ate the ef­fec­tive­ness of fund util­i­sa­tion by en­trepreneurs.

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