Multinational conglomerate Sime Darby Berhad was let off the hook from explaining its severe losses to the Parliament’s Public Accounts Committee (PAC).

PAC chairperson Azmi Khalid said this was because Sime Darby is not considered a “government agency”.

NONE Azmi, who is also the Padang Besar MP, said that as Permodalan Nasional Berhad (PNB) and the Employees Provident fund (EPF) - the primary stakeholders in Sime Darby - are not considered as government agencies, thus PAC has no authority.

“EPF’s funds come from its shareholders while PNB’s funds come from private investors. Therefore, Sime Darby is not a body qualified to be investigated by the PAC,” he declared.

Citing Standing Orders 77, he pointed out that PAC’s responsibility was only to “monitor expenditure approved under the budget tabled in Parliament”.

“But both Sime Darby and PNB are not defined as government agencies. In both bodies, their financial resources come from private investors,” he said.

The conglomerate incurred a  massive loss of RM2.1 billion in the financial year which ended in June.

According to auditors, its losses were due to mismanagement and wrongdoing at its energy and utilities (E&U) division.

Soon after, the company's group chief executive Ahmad Zubir Murshid was asked to take a leave of absence, while the Malaysian Anti-Corruption Commission (MACC) and the Securities Commission (SC) investigate the matter.

PTPTN probe yet to be completed

On PAC's probe on financial irregularities National Higher Education Fund (PTPTN) and complaints on the Educatiom Ministry's food supplement programme (RMT) uncovered in the 2009 Auditor-General's report, Azmi said that the probes were ongoing.

He revealed that PAC had thus far sought explanations from PTPTN, the Education Ministry and several other government agencies.

azlan “The PAC report on the bodies investigated will be revealed soon. At this point, I cannot give a statement because the report is not completed,” he said.

According to the audit report, PTPTN had approved loans totalling RM23.78 million to 16,013 students who did not apply for it.

auditor report sardine sandwich turn into white bread with margarine 251010 Meanwhile, the report found that students were provided with only two slices of white bread with margarine, instead of the sardine sandwiches they were promised under the RMT.

Food suppliers in five different primary schools around the country were also found to be providing food that does not meet the recommendations of the RMT programme.

Azmi added that the Defence and Health Ministries will also be summoned to explain the irregularities found in the audit report.

NONE He was referring to the Defence Ministry’s decision to award Kausar Corporation Sdn Bhd the project to build the 7 Brigade Complex in Skudai, Johor for RM256 million in July 1997, but the project has yet to be completed.

The audit report also found that 10,101 patients at five hospitals nationwide paid a total of RM143, 329 in excess fees from 2007-2009 for haemodialysis treatment.

The five are Sultanah Bahiyah Hospital in Kedah, Kuala Lumpur Hospital, Malacca Hospital, Sultanah Nur Zahirah Hospital in Terengganu and the Sarawak General Hospital.

“We will call the officials maybe this month, if not they will be called in January. We will also call officials from the Higher Education Ministry on Polytechnic Muadzam Shah which is yet to be completed although the project started 10 years ago,” said Azmi.