KUALA LUMPUR (September 28): The unsatisfactory corporate governance of MARDI Corporation Sdn. Bhd. (MARDICorp) contributed to the lack of results and success of the Suriname reverse link project.
The Auditor General’s Report (LKAN) 2019 Series 2 found that seven of the nine aspects of corporate governance audited were not being fully practiced and that weaknesses in board oversight had affected the management and the smooth handling of the main business of the enterprise.
“Among the weaknesses identified were unfulfilled production targets, unassessed results and disorganized contract administration, while the terms and conditions of the Secretary General’s appointment could not be confirmed as the letter of appointment was not has not been submitted to the auditor.
“Standard operating procedures for the core business and other activities carried out by MARDICorp have not been provided,” the report revealed.
Based on the scope of the audit, the goals of establishing MARDICorp have not yet been fully achieved.
According to the report, although MARDICorp’s financial situation is stable, claims from the Suriname Reverse Linkage Project worth US $ 1.31 million that had not yet been received resulted in MARDICorp recording a cumulative loss. of 14.45 million ringgit in 2019.
As such, the board of directors and management of MARDICorp are invited to pay attention to several issues to strengthen its corporate governance and boost the management of the main activity of the company, namely the commercialization of technology. of MARDI to be in line with the objectives of its creation.
Among other things, to ensure that corporate governance has been improved and that the balance of the Suriname reverse link project consultation fee has been claimed appropriately and to review the objectives of the company with the Institute Malaysian Agricultural Research Development (MARDI) so that the direction of the enterprise is clear and there is no overlap in functions.
MARDICorp, a 100% subsidiary of MARDI, was created on May 25, 1992 to manage MARDI’s marketing investments.
For more articles on the Auditor General’s Report 2019, Series 2, click here.