KUALA LUMPUR, July 15  — MyCreative Ventures Sdn Bhd (MyCV), a wholly-owned subsidiary of the Ministry of Finance (Incorporated) had invested RM214.24 million from the government grant for the  Private Debt dan Private Equity programmes without the approval from the Finance Ministry.

Auditor-General Datuk Nik Azman Abdul Majid said an audit done on the company between November 2018 and January 2019 had found that the fund was invested in the money market.

The matter was revealed in the Auditor-General’s Report 2018 Series 1 released by the National Audit Department today.

MyCV, established in April 2012, is a lender and registered venture capital company, aims to invest in the viable local creative companies to drive the growth of the country's creative industry via Private Debt Programme and Private Equity Programme.

Advertisement

Under the Private Debt Programme, MyCV provides loans and investments to qualified companies while the Private Equity programme is an equity investment programme for the creative industry companies at its preliminary stage and had passed the due diligence processes set by MyCV. 

According to the report, the Private Debt programme was managed efficiently with the number of application approvals and the total amount of financing recorded 109.3 per cent and 111.1 per cent, respectively for the period of 2016 to 2018.

 “The performance of loan disbursement to the companies was also effectively managed as 94 of the 121 approved companies (or 77.7 per cent) had received their funding.  

Advertisement

 “However, the achievement of outcome for Private Debt programme can not be evaluated as MyCV does not set the outcome it needs to achieve,” it said.

At the same time, the department said it found that the programme had been successful in helping the growth and development of companies in the creative industry in the country. 

As for the Private Equity programme, the department said it could not evaluate the effectiveness of the programme as MyCV was yet utilised RM50 million fund it received on Nov 30, 2016.

 “The programme was supposed to operate on July 1, 2017, but could not be implemented as MyCV was still in the process of selecting companies,” said the report.     

The department recommended that MyCV take proactive and effective measures to improve raised issues. — Bernama