Auditor-General gives Khazanah thumbs-up

by **Cals** Thu 03 Oct 2013, 09:01

Published: Thursday October 3, 2013 MYT 12:00:00 AM
Updated: Thursday October 3, 2013 MYT 7:18:31 AM
Auditor-General gives Khazanah thumbs-up

KUALA LUMPUR: The Auditor-General has given the thumbs-up to the financial performance of Khazanah Nasional Bhd, which has fulfilled its role effectively as the investment catalyst in strategic sectors in the country and overseas.
According to the 2012 Auditor-General’s Report, for 2009, 2010, 2011 and 2012 financial years, Khazanah’s financial performance was good with annual comprehensive income of RM640.7mil, RM1.215bil, RM5.692bil and RM1.562bil respectively.
The report, which was tabled at the Dewan Rakyat on Tuesday, said that Khazanah’s investments focused on the finance industry, media and communications, utilities, information technology and transportation.
“Up to Dec 31, 2011, Khazanah has direct shareholdings in 86 subsidiary companies including special-purpose vehicles and investments in 13 associated companies, which amounted to RM25.048bil and RM22.189bil respectively,” it said.
The company’s main income was derived from dividend income from investments in subsidiary companies, associated companies and quoted shares of companies listed on Bursa Malaysia, while its main expenditure was emolument, interest expense and provision for diminution in value of investments.
Overall, Khazanah’s cashflow was stable for four consecutive years and its investment performance was good.
As at Dec 31, 2012, its realiseable asset value has reached RM121.372bil, an increase of RM13.177bil (12.2%) compared with RM108.194bil in 2011.
Apart from investments in Malaysia, some 10.5% of its portfolio comprised investments in foreign countries such as India, China, Singapore, Middle East and others.
The report also said that the audit review on Khazanah’s investment performance against its target revealed that the company succeeded in achieving its target for sales inflow whereby in 2009 it recorded RM3.1bil compared with the target of RM1.6bil.
In addition, to ensure that Khazanah complied with all the prescribed investment and sales process, the auditor-general had reviewed six files on investment and five files on sales worth RM5.288bil and RM2.147bil respectively.
The auditor-general also proposed that Khazanah’s management ensure all assets purchased by the company were utilised as in the procurement justification, and for assets that have not been used, they must be kept properly to make sure their value and quality were protected. — Bernama