LTH, IRB, Felda among agencies receiving audit certificates

KUALA LUMPUR: Lembaga Tabung Haji (LTH), the Inland Revenue Board ( IRB) and the Federal Land Development Authority (FELDA), are among 16 agencies which received Audit Certificates Without Reprimand with Emphasis of Matter for the financial year 2017.

In addition, the Kumpulan Wang Industri Elektrik (KWIE), a trust account, was also handed an Audit Certificate Without Reprimand with Emphasis of Matter .

According to the Auditor General’s Report Series 2, the methodology for determining policy in respect of the decline in financial asset value at LTH was inconsistent and changed on two occasions.

Based on the eighth paragraph, MFRS 136: Impairment of Assets, an allocation for decline in value has to be made, if the carrying amount of an investment exceeds the recoverable amount.

For the financial year ending Dec 31, 2017, LTH did not record an asset value decline of RM 227.81 million for investments in three subsidiaries and three associated companies, particularly an investment in TH Heavy Engineering Bhd amounting to RM164.58 million.

The financial statement also received an opposing view from the external auditors.

Meanwhile, the IRB provided financing without interest of RM100 million to a subsidiary, Yayasan LHDN formed in October 2017, without any agreement between both parties.

According to the report, the financing was provided with a repayment condition by Yayasan LHDN from 2037, 20 years after it was made available.

Meanwhile, FELDA and the Group recorded a steep rise in net losses respectively of RM5.73 billion and RM4.85 billion for 2017 compared to RM251.24 million and RM729.6 million in 2016.

The current net liabilities of FELDA and the Group totalled RM643.93 million and RM27.03 million respectively, compared to current net assets of RM343.17 million and RM1.234 billion in 2016.

The cash flow for operational activities of FELDA and the Group also suffered deficits of RM1.20 billion (2016: RM1.16 billion) and RM503.49 million (2016: RM578.54 million) respectively.

FELDA and the Group also had loans from financial institutions of RM7.8 billion (2016: RM6.82 billion) and RM12.14 billion (2016: RM9.08 billion) respectively.

KWIE had invested RM2.37 billion as fixed deposit in a licensed bank without approval of the Finance Ministry.

However, an application for approval, was sent to the Ministry of Energy, Green Technology and Water. — Bernama