Why has UiTM Holdings failed to meet its investment objectives?

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UiTM Holdings Has Not Achieved Its Investment Objectives Due to Non-Compliance and Operational Issues

UiTM Holdings Group and its subsidiaries have not fulfilled their initial purpose of generating investment opportunities and enhancing the strategic standing of UiTM's core business. This shortfall is significantly attributed to capital injections totalling RM259.98 million between 2007 and 2018, which were made without the necessary approval from the Minister of Finance, contravening Act 173. Furthermore, the acquisitions of UiTM Private Education Sdn. Bhd. (UPESB) and UiTM Technoventure Sdn. Bhd. (UTVSB) were also conducted in violation of this act.
Lack of Ministerial Approval for Capital Injections and Acquisitions

The Public Accounts Committee (PAC) report highlights that UiTM's capital injections into UiTM Holdings, amounting to RM259.98 million from 2007 to 2018, were made without obtaining the requisite approval from the Minister of Finance. This procedural lapse is inconsistent with the provisions stipulated in the MARA University of Technology Act 1976 (Act 173). Consequently, the subsequent takeovers of UiTM Private Education Sdn. Bhd. (UPESB) and UiTM Technoventure Sdn. Bhd. (UTVSB) were also executed in contravention of the same act, indicating a systemic failure in adhering to regulatory requirements for significant financial and corporate actions.
Unresolved Land Condition Exchange for Solar Project

A key operational aspect affecting UiTM Holdings' investment objectives relates to the solar project in Gambang, Pahang. While the project itself is intended to benefit UiTM's operations, the actual exchange of land conditions at Solar Park I Gambang has not yet been finalised. This delay in completing the land condition exchange suggests potential complexities or administrative hurdles that are impeding the full realisation and operationalisation of this specific investment.
Financial Strain from Unfinalised Lease Agreement

The failure to finalise a new lease agreement between UiTM and UiTM Private Healthcare Sdn. Bhd. (UPHSB) has led to significant financial and maintenance issues. This non-finalisation has resulted in a substantial rent arrears of 15 months, placing a financial burden on the entities involved. Moreover, the prolonged absence of a formalised lease has contributed to the poor maintenance of the UiTM Specialist Health Centre hospital building, impacting the operational integrity of this healthcare facility.

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Why has UiTM Holdings failed to meet its investment objectives?

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