PUTRAJAYA, Aug 24 — Talent Corporation Malaysia Berhad (TalentCorp) and Tabung Haji Hotel & Residence Sdn Bhd (THHR) were the two government-linked companies with the most unsatisfactory levels of governance out of nine audited federally, Auditor-General Datuk Nik Azman Nik Abdul Majid revealed today.
When presenting the Auditor-General’s Report 2019 (Series 1), Nik Azman suggested TalentCorp’s issued could be because it has been without a chief executive officer since June 2018.
“A change of government happened in 2018, and that is one of the reasons for the vacancy.
“At that time there was a lot of exercises that involved the restructuring of ministries, where first TalentCorp was placed under the Prime Minister’s Office and then it was changed to the Human Resource Ministry
“During that time the government changed several positions and there were many other agencies with its CEO role also vacant,” he said.
As for THHR, Nik Azman said poor corporate governance became a theme during an audit of the Tabung Haji unit.
Nik Azman said THHR was advised to enhance the functions of its chairman, directors, chief executive and company secretary.
It was also advised to review its standard operating procedures, strategic planning and key performance indicators (KPI), and internal auditing.
Other government-linked companies audited by the National Audit Department (NAD) include Amanah Raya Bhd, Small Medium Enterprise Development Bank Malaysia Bhd, Technology Park Malaysia Corporation Sdn Bhd, UDA Holdings Bhd, Malaysian Industry-Government Group For High Technology, and the National Institutes of Biotechnology Malaysia.
Among the shortfalls of THHR as highlighted in the A-G’s report include its low occupancy rate, detailing how the company saw only a range of 37 per cent to 45.9 per cent success rate based on its targets, with only 56.9 per cent to 62.8 per cent of its revenue and income goals achieved between 2016 and February this year.
It also noted how the facilities at the THHR premises were far from satisfactory, with spoilt and broken fittings, rendering the rooms unfit to be occupied by guests, and that marketing strategies and promotions were not executed effectively.
As for TalentCorp, their shortfalls include enforcing SOPs which have yet to be approved by a Board of Directors, and the lack of an internal audit or any audit committee within the company since its formation in 2011.
The report also noted that TalentCorp’s KPI and targets were not efficiently mapped out, added with its unsuccessful Return Expert Program which failed to attract its intended targets and was functioning with a poor set of SOPs.